The '60/40' Portfolio doesn't work anymore. The Murdoch Effect.
The '60/40' Portfolio doesn't work anymore. The Murdoch Effect.
The Blind Squirrel's Monday Morning Notes, September 25th, 2023.
Summary
We can debate central bank ‘policy errors’ as much as we want but the reason that the OECD bond component of your retirement portfolio has stopped doing its job is not really any longer the fault of Powell, Lagarde or Bailey.
The problem is politics and populism. To the horror of the neoliberals, the populist / culture war Trojan Horse that brought them power has backfired. It turns out that fiscal largesse and ‘big government’ is really popular with voters.
The OECD bond market does not like the look of the economic implications. This has major implications for the typical 60/40 (stock/bond) retirement portfolio. We look at alternative allocations. Hint: it’s not private credit!
This week’s Acorn review covers #Offshore #Energy BNO 0.00%↑ DBA 0.00%↑ WEAT 0.00%↑ $FCOJ CANE 0.00%↑ #Mercedes DASH 0.00%↑ and #uranium
The audio companion to this week’s note will be uploaded to Substack in a couple of hours. It will also be available as a podcast on Apple, Spotify and the other major podca…