Private Credit Becomes Core as JPMorgan Rethinks 60/40 Model

JPMorgan Chase & Co.’s asset management arm is pitching private markets as essential ballast to investor portfolios amid stretched stock valuations and unreliable bond hedges.

With stock gains increasingly driven by a handful of large caps and bonds potentially offering less protection in downturns, the traditional 60/40 portfolio mix needs reinforcement, the $4 trillion asset manager said in its 2026 investment outlook. Private credit, so-called secondaries — markets where limited partners can sell their stakes to other institutions — and opportunistic debt strategies should be treated as essential, not optional, the firm says.