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Bloomberg Surveillance

Single Best Idea with Tom Keene: Jim Caron, Julian Emanuel, & Bob Doll

Jul 2, 2024
Jim Caron, Julian Emanuel, & Bob Doll share insights on adapting investment strategies to mitigate portfolio volatility. Topics include the challenges of traditional 60-40 portfolios, benefits of investing in stocks and bonds, financial independence, and navigating market caution amidst COVID impact.
07:40

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Quick takeaways

  • Bonds' reliability in providing stable returns is diminishing, altering the 60-40 portfolio split dynamics.
  • High market valuations advocate for a cautious investment approach with a focus on investment management.

Deep dives

Shift From Traditional Portfolio Strategy

Traditional 60-40 portfolio models are facing challenges as the reliability of bonds in producing stable returns diminishes. Historically, bonds have performed well, but current trends indicate a shift. With bonds becoming less reliable for stable returns, the 60-40 split may no longer yield the traditional 7% return. This necessitates a more flexible approach to portfolio hedging, potentially altering the allocation ratio to adapt to the changing dynamics.

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