The Bad PlaceUS Top News and Analysis | BlackRock says investors need to look beyond the 60/40. Here’s how it is diversifying portfolios right now
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BlackRock’s chief investment strategist for the Americas, Gargi Chaudhuri, warned that traditional 60 %‑stock/40 %‑bond portfolios are no longer reliable as bonds have lost their ballast function and the stock‑bond correlation spiked to its highest level since May 2024. She urged investors to add “liquid alternatives” — mutual‑fund or ETF strategies that mimic hedge‑fund tactics while offering daily liquidity — as a way to generate returns regardless of S&P 500 movements; BlackRock’s iShares Systematic Alternatives Active ETF (IALT) already holds 95 % of its assets in cash or derivatives and is up about 9 % year‑to‑date. Chaudhuri also suggested a modest gold exposure (1‑3 % of the portfolio) for diversification, noting its recent volatility and emphasizing that any allocation should be small and thoughtful. When incorporating these new assets, she recommended taking modest amounts from both the equity and bond portions of a portfolio (typically 2‑10 %) rather than heavily diluting either side.
Read more: https://www.cnbc.com/2026/04/22/blackrock-on-60/40-and-portfolio-diversifiers.html
#BlackRock #GargiChaudhuri #iShares #S&P500 #Gold
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