The 60/40 Asset Allocation Has Two Problems – The “60” and the “40”
Measuring book yield correctly
Market sentiment towards the Chinese currency has shifted significantly
Transient market volatility has the potential to be thrilling, especially on the heels of low volatility spells like those in the not-too-distant past.
The performance of the US dollar significantly diverged from relative rate spreads.
The arrival of the bond bear market, continued normalizing of monetary policy and need to finance expanding U.S. budget deficits, long-term rates are set to rise.
Many participants may be pleased with year-to-date results from their retirement plan statements, but the outlook for market returns over the next 10 to 15 years remains less than inspiring, according to J.P. Morgan’s 2018 Long-Term Capital Market
China’s economic revolution continues to be one of the defining stories of the 21st century.
David Kelly, the Fed, interest rates
Implications for passive bond allocations