The traditional 60/40 buy and hold portfolio is dead, CMG Capital Management Group CEO Steve Blumenthal told InvestmentNews in the story Investment Managers ditching 60/40 portfolios in favor of more liquid alternatives
Enhanced Modern Portfolio Theory is what Blumenthal calls it. It’s not that Modern Portfolio Theory (MPT) is wrong, rather that it’s time to question whether 60/40 remains the best way to optimize the risk-reward relationship. This asset mix is simply too narrow in the current low-dividend-yield, low-inflation, low-interest-rate environment.