Smarter Portfolios for a World in Transition

The 2024 long-term capital market assumptions focus on smarter portfolios for a world in transition. With significant changes happening in the macro-environment, including transition in the economy, policies, technology, and climate, the 60-40 asset allocation remains a strong starting point. Despite a slight decrease in the forecasted returns for a 60-40 portfolio compared to the previous year, the 7% return over the long run is still attractive. However, investors are encouraged to extend their investments beyond traditional stocks and bonds, considering alternatives and active management to enhance returns and manage the ongoing transition.