Top Traders Unplugged

TTU151: What Comes After 60/40? Systematic Thinking, BlackRock Style ft. Jeff Rosenberg

6 snips
Dec 10, 2025
Guest
Jeff Rosenberg
Jeff Rosenberg, Managing Director at BlackRock Systematic, dives into how the post-COVID world is reshaping investment strategies. He discusses the shift from bonds as mere diversifiers to vital income sources amidst rising inflation. The conversation also touches on the impact of government debt and soft financial repression on interest rates. With a focus on systematic investing, Rosenberg highlights the emergence of liquid alternatives and the necessity for whole-portfolio approaches to navigate growing equity concentration risks.
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INSIGHT

Inflation Shift Breaks The Old Policy Assumption

  • The post-COVID world shifted from too little inflation to too much, changing policy dynamics and portfolio construction.
  • The end of 'divine coincidence' weakens bonds as automatic diversifiers and forces rethinking of stock-bond correlation.
INSIGHT

Bonds Are Becoming Income, Not Insurance

  • Fixed income is migrating from a diversification role to an income role as yields normalize upward.
  • That pivot opens demand for alternative diversifiers like trend and liquid alts to fill portfolio gaps.
INSIGHT

Fiscal Pressure Can Distort Interest-Rate Signals

  • Rising public debt and potential fiscal dominance mean interest rates may be set by policy, not markets.
  • Systematic models must consider soft financial repression and adjust what inputs they rely on.
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