Swap Bonds for Commodities in 60/40 Funds, BofA Strategists Say
- Secular bull market in commodies is just getting started: BofA
- Strategists still see bonds as best hedge against hard landing
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Investors pursuing widely followed 60/40 strategies should consider swapping out bonds for commodities, according to strategists at Bank of America Corp.
The strategy usually involves investing 60% of a portfolio in stocks and 40% in fixed income. But commodities may be a better bet in an environment of prolonged high inflation, the BofA strategy team including Jared Woodard and Michael Hartnett wrote in a note.