Report by Goldman Sachs

How to Overhaul the Tried-and-Tested Investment Portfolio When Inflation Soars


Autor: Marcelo Soba

  1. The 60/40 portfolio — split between the S&P 500 Index of stocks (60%) and 10-year U.S. Treasury bonds (40%) — fell about 20% in the first half of 2022, the biggest decline on record for the start of a year
  2. Decades of tame inflation allowed central banks to drive interest rates ever lower to try to smooth out the business cycle, which in turn pushed assets from stocks to house prices higher, according to Christian Mueller-Glissmann, head of asset allocation research within portfolio strategy at Goldman Sachs
  3. Real assets could be more important in a cycle where inflation is higher than the world has been used to over the past two or three decades