Why the 60/40 Portfolio is Obsolete | EXPOSING the Outdated Relic

50 years ago - investors used to do A LOT of guessing, basing their insights on casual observations rather than math and science.
Stock market observers noticed that when the stock market collapsed, bonds didn't fall with it. While bonds didn't pay much, they generally held their value or at least recovered quickly. Hence, they were negatively correlated or exhibited a LOW correlation to the stock market when the market corrected.
Bonds "appeared" to be a safer bet. From this grew an arbitrary, unscientific "rule of thumb" that the number of bonds you should own should match your age.
So, since the average age in North America at the time was about 40, a 60/40 asset mix portfolio was the perfect asset mix for an average individual. It was right in the middle.
Watch this video to learn WHY the 60/40 Portfolio is a MYTH.
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About McIver Capital Management:
McIver Capital Management delivers sophisticated, verifiable, institutional calibre, discretionary portfolio management to successful organizations, families and individuals.
Using Industry-leading mathematical processes, systems and techniques in conjunction with access to deep databases and information flows, McIver Capital Management is able to deliver to you customized investment solutions in Vancouver. Our investment process is peer reviewed, and we have a long track record of success. Our process is based upon math and science and not upon speculation.
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Key Moments
00:18 Where did the 60/40 portfolio come from?
01:27 Why the 60/40 portfolio doesn't protect you
02:59 Why do people STILL buy them?

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