The Risk Allocation of a 50-50 Portfolio

Rott: The 6040 portfolio is only operating now in two dimensions. When you have shocks that are related to inflation and they are coupled with growth that is under expectations, you now have a massive blind spot. We want to be driving a four by four through the decades. How do you translate that into dollars? Well, you have to give 80% of the assets in terms of this 6040 portfolio roughly 80, 80 plus percent of the assets to fixed income and 10 to 15% to equities.