investment strategy: BlackRock CEO Larry Fink suggests shifting from 60/40 to 50/30/20 investment model for adequate diversification
BlackRock CEO Larry Fink is questioning the long-standing 60/40 investment strategy, which allocates 60 per cent to stocks and 40 per cent to bonds. Fink presented his argument about 60/40 investment UX in his annual investor letter because he was unsure if the strategy provides adequate diversification against current market changes. His proposed investment approach divides assets into equal thirds between equities at 50 per cent, fixed-income at 30 per cent, and alternative investments, which encompass real estate and infrastructure and private credit, at 20 per cent.
The shift toward private market investments
Fink believes that private assets provide three distinct benefits to investors through added protection from inflation…
