Four Strategies for Using Liquid Alts in Market Downturns
nvestors are shocked that the so-called 60/40 portfolio failed to provide protection from the bear market in stocks this year. Many thought stock and bond prices always move in opposite directions, which was the foundation of their diversification strategy. Today the average 60/40 portfolio is down 18.63% compared with an 18.6% decline in the S&P 500, so this belief was wrong. The combination of rising interest rates and the threat of a recession has hammered both stock and bonds.