Our Latest White Paper: The 60/40 Problem

 

The movie “Moneyball” has an interesting scene in which General Manager Billy Beane is debating his scouts on how to best replace two key players lost in free agency given the team’s limited budget. The scene contains a back and forth between Beane and several scouts discussing and clearly disagreeing about “the problem.”

“You’re not even looking at the problem”, Beane declares. 

Fast forward to today - at this unique point in modern financial history - with interest rates near historic lows and stocks near historic highs. Against this backdrop we wonder if advisors and investors are correctly “looking at the problem” of a potential rise in interest rates.

Since 1900, the U.S. has experienced five interest rate regimes. Exhibit A displays this full modern history of U.S. 10-year yields.

 

60-40Graph


Rather than solving a new problem with an old solution, Blueprint has considerable evidence of a better way. 


 
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Past performance is not indicative of future results. The material above has been provided for informational purposes only, and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and Blueprint Investment Partners makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that Blueprint Investment Partners LLC (“Blueprint”) may link to are not reviewed in their entirety for accuracy and Blueprint assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Blueprint.  For more information about Blueprint Investment Partners, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov or contact us at (800) 704-6913

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