60/40 Is Dead, Long Live 60/40!

Summary

• The traditional 60/40 stock-bond portfolio deserves a skeptical review due to rising inflation, unsustainable debt, and the breakdown of negative stock-bond correlation.
• An alternative is to replace much of the fixed income allocation with gold, which offers superior diversification, inflation protection, and insulation from fiat currency risk.
• Recent years have demonstrated gold's potential strength versus bonds, as bonds have lost their safe haven status amid persistent inflation and fiscal instability.
• Despite gold's strong run, the backdrop still favors gold over bonds, and we expect continued outperformance from a gold-heavy, forward-looking 60/40 portfolio.

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A 60/40 portfolio is a widely used asset allocation strategy that involves investing 60% of a portfolio in stocks and 40% in bonds or other fixed-income securities. This approach aims to balance the potentially high returns of stocks with the stability of bonds, while

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