The 60/40 Portfolio Is Out. The 50/30/20 Portfolio Plus AI Investing Is In.
Key Takeaways
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The 60/40 portfolio no longer reflects modern market dynamics, according to José Minaya of BNY.
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A better model is a 50/30/20 portfolio that balances equities, bonds, and alternatives, he says.
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AI-powered investing may help investors manage complexity and improve performance.
For decades, the 60/40 portfolio—60% stocks and 40% bonds—was considered the gold standard for balanced investing. It aimed to combine the long-term growth potential of equities with the general stability of bonds. But according to José Minaya, global head of investments and wealth at BNY, that approach may no longer fit today’s complex markets.
“The old diversification is … 60/40 stocks, bonds … [but] the markets are a lot more…
