Part 9/10:
The traditional 60/40 rule served many well in past decades, but with the evolving economic landscape marked by rising inflation, shifting geopolitical tensions, and changing monetary policies, strict adherence may no longer be wise. A more diversified approach—emphasizing gold and other assets that withstand inflation and market volatility—appears more appropriate.
Key Takeaways:
The 60/40 investment rule is increasingly unreliable due to changing market correlations.
US long-term treasury bonds may become a “guaranteed loss” asset in real terms.
Gold is gaining recognition as a safe and resilient asset, with institutional backing and strong forecasts.
Diversification should now include a meaningful allocation to gold and possibly other inflation hedges.