JPMorgan Says 60/40 Portfolio Far From Dead, Set to Trounce Cash
- 60/40 seen beating cash by 4.1 percentage points over decade
- Asset management unit says add alternatives to juice returns
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The popular 60/40 portfolio isn’t dead, and in fact is a significantly more compelling investment than cash over the coming decade, according to JPMorgan Asset Management.
The strategy of putting 60% of assets in equities and 40% in Treasuries is set to outperform cash by an annualized 4.1 percentage points, and inflation by 4.5 percentage points, over the next 10 years, strategists at the money manager said in a report looking ahead to the state of capital markets in 2024. That’s even with money-market funds paying upwards of 5% these days, they noted.