Strategic Asset Allocation: The Future of the 60-40 portfolio in light of the low bond yield environment

CFA Society Switzerland
21.09.2021 - 21.09.2021
6300 Zug
21/09/2021 : 17:30-18:30
Fachseminar, -referat oder -kongress
  • Englisch
Investments Skills The classic 60/40 equity/bonds strategic allocation is challenged by the lack of yield and ability to rally off the safe bond market in major countries. There is no perfect substitute for safe bonds. How to lower risk then? One partial solution for the end investors is to focus on long-term risk as most people save for old age and should not be as much concerned about short term volatility in the market which is largely noise. Too much of Finance uses the easy assumption that one can bootstrap high-frequency volatility, through the square root of time rule, to assess long-term risk. That is wrong when market are subject to momentum and/or to mean reversion. Hybrid assets, bond-like equities and equity like bonds, have the best return to long term risk as they mean revert best over periods of 5-10 years. What will you learn? How to asset long-term expected return and risk on different asset classes? Long-term analysis for strategic allocation is very different from short-term tactical if not frequently the opposite. Be ready to unlearn a few things. Long-term bond returns do not depend on where yields will go. Economic growth has little to do with long-term equity returns.
  • Finanzwirtschaft
  • Risk- und Portfolio Management
  • Wealth Management
Martyna Maniak-Hüsser
041 74 100 74
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