How to understand volatility and its role in portfolios
FTAdviser Podcast
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Do We Need to Throw Out the 6040 Portfolio Model?
The 6040 portfolio model is a reasonably useful framework, although given the current market circumstances and potentially direction of travel, it is perhaps needs to evolve. The law of numbers tends to tell us that don't lose money, not lose as much, and then you don't have to recover as much. So particularly in those lower risk rates, it becomes quite a challenge if you happen to have been invested in the long bonds. We've almost had to use the entire toolkit available to us in order to deliver performance or relative performance in this case in the current environment.
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