Goldman's Warning & Blueprint's Answer


Valuation Frustration GraphGoldman Sounds A Warning

This seldom happens: Equities, bonds, and credit being similarly expensive at the same time. "A condition that is going to translate into pain for investors". (Full Article Here)

Major drawdowns in 60/40 portfolios averaged 26% in real terms, lasted about 19 months, and took almost two years to return to previous peaks.

 

No Surprise To The Blueprint Team

 

Given the historical uniqueness of the current period for traditional asset classes, we encourage advisors to explore incorporating efficient, robust risk management processes to solve their 60/40 problem.

Our answer at Blueprint utilizes traditional asset class diversification while also incorporating time diversification (trend following).

 

For more Blueprint research on The 60/40 Problem:

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