Industry Experts Share How to Reshape Portfolios With Alternatives

The 60/40 portfolio is under scrutiny as correlations between stocks and bonds have become more variable and traditional safe havens face new pressures, prompting advisors to seek alternative allocations to improve portfolio efficiency. Advisors are increasingly evaluating nontraditional diversifiers and portfolio tilts to manage shifting correlations and preserve risk-adjusted returns.

Analysis

The 60/40 portfolio is under scrutiny as correlations between stocks and bonds have become more variable and traditional safe havens face new pressures, prompting advisors to seek alternative allocations to improve portfolio efficiency. Advisors are increasingly evaluating nontraditional diversifiers and portfolio tilts to manage shifting correlations and preserve risk-adjusted returns.