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- The 60/40 Comeback
The 60/40 Comeback
Cliff Asness, Richard Bernstein, Jonathan Pollock, Nancy Pelosi & More
The Idea Farm
December 08, 2024
Together With
“Modern Monetary Theory is neither modern nor monetary nor theory.”
Research
PIMCO provides an update on the correlation between stocks and bonds, which has turned negative, allowing for complementary and more diversified positions across asset classes.
Apiero - A guide to 130/30 loss harvesting (15 pages)
Apiero explains why a long-only loss harvesting portfolio or a low-cost ETF may be more desirable than a long/short tax-managed equity portfolio after costs and fees are taken into consideration.
AQR provides a framework for balancing investments in liquid and illiquid alternatives by considering factors like liquidity needs, risk tolerance, and return potential.
Transtrend - Just Buy The Index (8 pages)
While CTA index returns are appealing, they may lack the diversification and distinctiveness that drive actual index performance, making them less effective in capturing long-term returns.
Source: Transtrend. As of August 2024
Bonus Content
Morningstar explains the tax efficiency of ETFs, particularly compared to mutual funds. Link
UBS’ Paul Donovan explains the difference in the economic costs of stopping migrants from entering the US, and having established migrants leaving. Link
The NY Federal Reserve analyzed bank failures since 1865 and shared why bank failures happen and what these banks have in common. Link
How much cash is really on the sidelines? Has cash a replacement to stocks, bonds, or both? Richard Bernstein Advisors digs in. Link
Maybe money can buy you happiness after all. Link
Institutional Investor profiled Jonathan Pollock, co-CEO of Elliott Management, and his role in transforming Elliott into a more institutionalized organization while maintaining its activist investment edge. Link
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Podcasts
 11/26/24 - 35 minutes | Bernstein & Draho have discussion about the year-ahead, spanning the macroeconomic environment, to markets, to the landscape across Washington DC. They also review investment themes in-focus, along with allocation preferences across asset classes. |
 11/22/24 - 104 minutes | Cliff Asness discusses the less-efficient market hypothesis, value investing, the quant world, private equity, and more |
 11/18/24 - 50 minutes | The discussion delves into transforming unconscious beliefs about money through inner work, enabling individuals to align their financial relationships with personal values and purpose for greater freedom and fulfillment. |
What Else Is Happening
Meb Faber spoke with Michael Venuto about the ETF industry, the FIRE movement, and how to invest alongside politicians. Apple | Spotify | YouTube
ICYMI: We shared 90 facts from 2024.
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