Show notes
Subscribe to The Capitalist InvestorTraditional asset allocation models are going extinct. The 60% stocks 40% bonds portfolio split that you’ve been taught your whole life isn’t going to work like it used to. It’s time to think differently. When we came out of the global financial crisis, we could “set it and forget it” because interest rates on bonds were coming down. As interest rates go up from the 0.75% they’re at right now, the price of current bonds will fall. You may even get a negative return from your bonds. The 40% allocated to fixed income will be a headwind to your performance—unless you get creative. How do you do that? What are some asset classes you could consider? Listen to this episode of The Capitalist Investor for our take. Outline of This Episode[2:00] Why the 60/40 Portfolio is Dead[6:05] The purpose of the fixed-income allocation[8:17] Our top fixed-income alternatives[13:48] Why you NEED to make some changes[15:38] Why annuities can be an effective option[18:33] Our final takeaways on asset allocationResources & People MentionedBloomberg ArticleBowie BondsBlackstoneConnect with Derek GabrielsenTwitter: @DerekGabrielsenFollow Derek on LinkedInSend Derek a message hereCheck out Derek’s YouTube channel!Connect With Mark TepperTwitter: @MarkTepperSWPFollow Mark on LinkedInSend Mark a message hereThe SWP Connect YouTube ChannelSend your questions and comments to us at [email protected] to The Capitalist InvestorShow Notes byPODCAST FAST TRACKhttps://www.podcastfasttrack.com