The 60/40 Has Its Best Month in Three Decades?

The 60/40 portfolio is back in the headlines... but this time in a good way! It's quite the reversal from most of the things people were saying about it in 2022.?

According to 美国银行 Global Research, November was the best month for the 60/40 since 1991 with the S&P 500 jumping 9% and reversing its third straight month of losses.?

Of course, the "Magnificent?Seven" stocks have been leading the charge this year, leading ClearBridge Investments ' Scott Glasser to highlight concentration risk as one of the key concerns for equity markets .?

Now the question is will the momentum we experienced in November continue??

We are heading into what has historically been a strong season for stocks (AKA the "Santa Claus Rally" and "January Effect") and a new year that could?deliver rate cuts and benefit bondholders.?

Regardless of what's next, many would advocate for making some room in the 60/40 to diversify with alternatives.?

During our most recent Alternative Investing Masterclass , Bluerock Capital Management's Miguel Sosa outlined some of the reasons to consider asset classes like corporate structured credit:

"These asset classes have exhibited a lower correlation to both equities and fixed income markets as well, offering an additional benefit for investors in terms of not only attractive total returns and income generation but also a diversification benefit for their portfolios. So we're looking at this asset class very closely and are optimistic on the opportunities within this structured credit market going forward." Miguel Sosa

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Thanks for reading and we hope your December is off to a nice start! Stay tuned for a slew of exciting 2024 outlooks...?