The 60/40 “Balanced” portfolio, consisting of both stocks and bonds, has long been revered as a trusted guidepost for the moderate investor. Nevertheless, in 2022, this established methodology had one of its worst years on record as both sides of the portfolio came under pressure.
So, what is an investor to do? During a market with lots of uncertainty, the few asset allocations that perform relatively well are the ones that exhibit low correlation to the overall markets. At SAM, this investment strategy has become our bread and butter.
