The 50/30/20 Strategy and AI Investing Are Taking Over
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 aims 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.
Today’s markets are shaped by higher inflation and greater market volatility than what…
