For a long time, you could make plenty of money and sleep easy at night with a simple 60/40 portfolio. You put 60% of your money in stocks and 40% in Treasuries. The stocks generally went up. The Treasuries cushioned you during times of volatility and provided income. Then we got the worst inflat...
For a long time, you could make plenty of money and sleep easy at night with a simple 60/40 portfolio. You put 60% of your money in stocks and 40% in Treasuries. The stocks generally went up. The Treasuries cushioned you during times of volatility and provided income. Then we got the worst inflation in 40 years, and the Treasury part of those portfolios got obliterated. So does it still work? And if not, how should an investor think about their own personal allocations to various asset classes. On this episode, we speak with Cullen Roche, the founder and CIO of Discipline Funds and the author of the new book, Your Perfect Portfolio: The ultimate guide to using the world's most powerful investing strategies. His book goes through a number of different ideas in portfolio construction, talking about their pluses and minuses, as well as their history. In this conversation, he explains his general philosophy and how one should think about evaluating a person's circumstances to optimally design an investment portfolio.
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