The “new 60/40” portfolio

J.P. Morgan Asset Management December 18, 2024
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At J.P. Morgan Asset Management, we believe investors deserve an expert global partner they can trust to step up and deliver strong outcomes. From the largest institutional investors around the world to financial advisors around the corner, our clients rely on the power of perspective to help build stronger portfolios and solve their toughest challenges. Our clients trust us to manage $2.5 trillion in assets to secure what matters most to the individuals, families, companies, and communities they serve. To make the most of retirements. To help protect endowments. To strengthen returns. To enjoy hard-earned success. To any challenge our clients face, we say, Let’s Solve It. This content is exclusively for institutional/wholesale/professional clients and qualified investors only as defined by local laws and regulations. To access disclosures, please visit: https://am.jpmorgan.com/ https://www.jpmorgan.com/content/dam/jpm/global/disclosures/disclosure-notice/social_media_policy.pdf

Video Description

In recent years, the notion of “correct” portfolio construction has been challenged and diversification has become unpopular. Stocks and bonds have shown an increased propensity to move together, calling into question the efficacy of the classic “60/40” portfolio. Moreover, sustained outperformance in select segments of global financial markets has caused portfolios to drift away from target allocations and left many investors with little motivation to allocate elsewhere. However, with a new year comes new forces driving markets, and the winners of the past may not be the winners of the future. To prepare portfolios for any unforeseen risks that may arise in 2025, diversification remains the best option, although the ways in which investors can diversify may look different than before. To share his thoughts on diversification in the year ahead, Dr. David Kelly is joined by Jack Manley, Global Market Strategist here at J.P. Morgan Asset Management. Timestamps: (00:00) Introduction (1:20) Is the 60/40 dead? (4:28) Is there a “correct” asset allocation? (6:40) How could different asset classes solve for different “issues” that will be relevant in 2025? (13:14) What might be some of the biggest challenges facing portfolio construction in this coming year?

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