Is the 60/40 Portfolio Dead?

Sébastien Page, CFA, head of the Global Multi-Asset division at T. Rowe Price and author of “Beyond Diversification,” discusses the importance of asset allocation and diversification, why investors should go beyond diversification, and whether the 60/40 portfolio is dead.

▶️ Subscribe to the Take 15 Podcast YouTube channel:

???? Transcript

???? Email us for comments, questions, or appearance requests:
___________________________________________________________________________
Episode Breakdown:
1:43 Why Sébastien decided to write the book, “Beyond Diversification”
4:44 The motivation behind giving all proceeds from the book to the T. Rowe Price Foundation
5:45 Key themes that both advisors and investors can learn from the book
7:33 Why should investors go beyond diversification, and what wrong with diversification?
10:56 How can investors determine stock-bond mix?
14:13 Is the 60/40 portfolio alive or dead?
22:39 Are we paying enough attention to fat tails?
26:36 Sébastien’s tactical views on capital markets?
32:01 Sébastien’s LinkedIn view of teaching his daughter the basics of investing
34:40 Closing questions:
One positive, long-lasting change that Sébastien hopes to see as a result of the COVID-19 pandemic
One item Sébastien would take with him on a long-duration space flight
Flight vs. invisibility? Which do you pick, and what do you do with your superpower?
___________________________________________________________________________
Related articles and links:
Book: Beyond Diversification
Kiplinger
PIMCO
Forbes
Morningstar
LinkedIn post
Sébastien’s LinkedIn video with his daughter
___________________________________________________________________________
Find Sébastien here: