The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 66 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 72%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel says (via ETFEdgeCNBC)

The Siegel-WisdomTree funds will try to solve for that problem by offering low-cost, high-yield investment strategies that highlight one of Siegel's main arguments from "Stocks for the Long Run": that stocks may be subject to volatility in the short term, but ultimately have less long-term volatility when compared with bonds.

"That's why we recommend 75/25 as the equity/fixed-income allocation," he said, adding that it "would be the best way for those approaching retirement to establish their assets to get enough income and gains so they can maintain spending through retirement." Global central banks have been partly to blame for the yearslong decline in interest rates as their monetary policies become more accommodative, but they're hardly the only driver of the phenomenon, the professor said.Siegel cited other "powerful demographic factors" such as the aging of the global population, longer average life expectancy, a broader inclination to avoid risk and slower growth in the overall markets as additional depressants for Treasury yields.

"All these factors are going to keep these interest rates in these levels very long, and you cannot survive on a one-and-a-half-percent nominal interest rate," he said.. The real interest rates are negative now," he said, referring to the Treasury Inflation-Protected Securities version of the U.S. 10-year Treasury, which is adjusted based on consumer price patterns.

"It cannot maintain spending streams at all. Dividends on stocks are going to be the new bond in terms of thinking about retirement."

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 12. in SE
 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

Wharton ETFEdgeCNBC cnbc should post more stories about not trying to time the market instead of re-posting this story a hundred times.

Wharton ETFEdgeCNBC Are we in the 70s? 60 short and 40 gold is the near term strategy

Wharton ETFEdgeCNBC It does when the market tanks...

Wharton ETFEdgeCNBC No shit! With the yield at a record low and potentially the Dems wanting to tax the wealthy at 70% you will never be able to retire. Restating NO SHIT it won't work! Feliz Sabado 😁

Wharton ETFEdgeCNBC Looking like bad advice and bell ringing after last week’s debacle!

Wharton ETFEdgeCNBC This didn’t age well from like 2 weeks ago.

Wharton ETFEdgeCNBC 60% of your assets are invested in stocks, and 40% are invested in bonds.

Wharton ETFEdgeCNBC And this is why the pension system will fail.

Wharton ETFEdgeCNBC 40% bonds... cannot work anymore...

Wharton ETFEdgeCNBC 80-20 stock vs FICC mix is the way to go for me, feeling bullish.

Wharton ETFEdgeCNBC It’s a new era 📱

ETFEdgeCNBC ReformedBroker

ETFEdgeCNBC CNBC, you need to disclose when you have a sponsored tweet. Siegel is on your network 24/7 advertising for Wisdom Tree.

ETFEdgeCNBC 🤦🏼‍♂️

ETFEdgeCNBC Is he joking? The 60/40 portfolio had a phenomenal return last year, and is doing well again this year. In 2019, bonds were up 10% and stocks up 30%.

ETFEdgeCNBC Who is this?

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Next stock market crash: Mark Yusko sees 40-60% sell-off, lost decade - Business Insider'We're definitely in a bubble': A hedge-fund chief overseeing $2 billion explains why he sees a 40-60% crash looming — and a lost decade ahead for stocks Because the CRASH IS INETABLE. END OF CICZlE When you have PHD YOU KNOW!!!!!!!! Row!!!! peggymel2001 Wouldn’t it be nice to see all those silver tails lining up for the dole. The crash is coming!
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »