Diversification in the Age of Volatility

The End of 60/40?

The traditional 60% stocks/40% bonds split has struggled in recent years as correlations have tightened. Modern diversification requires looking beyond traditional asset classes.

Alternative Allocations

• Private Markets: Access to private equity and credit can provide non-public market exposure.
• Real Assets: Commodities and infrastructure often act as a hedge during equity downturns.
• Volatility-Targeted Funds: Utilizing strategies that benefit from market swings.

The key to a 2026 portfolio is not just having different assets, but having assets that react differently to the same economic news.