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I am not sure if the rush to add all those exotic alternative and expensive stuff into portfolios is going to produce a much better result. There are many new risk vectors introduced with these additions that may not be apparent today. The real problem people jumping from asset class to asset class making too big bets and when things do not pan out, they jump out making losses permanent. Their overall performance might be lower than 60/40 portfolio that they are trying to beat.
I think many of these alternatives will disappoint and 60/40 will survive.
Comments
I think many of these alternatives will disappoint and 60/40 will survive.