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The Alternative to the 60/40 portfolio

beebee
in The Bullpen
Hard to move away from something that has worked for so long, but:
Bernstein proposes ditching stocks and bonds as named assets in favor of beta, idiosyncratic alpha and defensive instruments. Beta is usually refers to broad indexed equity exposure like a fund tracking the S&P 500, Russell 1000 or a total market fund. Idiosyncratic alpha is where investor skill picking stocks or narrow based ETFs could add basis points of performance or not depending on the skill. Defensive instruments would traditionally be thought of as bonds but in Bernstein's thought it could be gold, cash and alternatives as well.
portfolio-strategy/this-time-we-really-really-mean-it-really
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