Wealthion - Be Financially Resilient

Why the 60/40 Portfolio Is Failing & What to Own Instead | Brett Rentmeester

4 snips
May 12, 2025
Guest
Brett Rentemeester
Brett Rentmeester, founder of Windrock Wealth Management, challenges the outdated 60/40 portfolio. He emphasizes the need for alternative investments to safeguard wealth against rising inflation and interest rates. Brett delves into essential ‘crisis-resilient’ assets like farmland, gold, silver, and Bitcoin, offering strategies to defend purchasing power beyond traditional stocks and bonds. He also discusses the potential of private lending and tokenization to create liquidity in illiquid investments, pushing investors to rethink diversification and embrace innovation.
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INSIGHT

Limits of 60/40 Portfolio

  • The traditional 60/40 stock-bond portfolio is outdated due to historical cycles and current market conditions.
  • Both stocks and bonds can suffer losses simultaneously, challenging typical diversification assumptions.
INSIGHT

End of Falling Rates Era

  • Falling interest rates have boosted asset values for decades, but rates bottomed around zero during COVID.
  • We are likely entering a rising interest rate cycle, which historically challenges bond and stock returns.
INSIGHT

Focus on Purchasing Power

  • Inflation erodes real returns, so earning nominal interest isn't enough to maintain purchasing power.
  • Investors must focus on increasing purchasing power, not just portfolio balance.
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