There has been a lot of bashing of the classic 60/40 stock-bond mix amid bonds' poorer performance. It provides a nice base middle ground for any portfolio discussion. If there is a market shock, it will rebound better than moving to cash and trying to time the addition of risk exposure.
Yes, using the 60/40 as a base anchors thinking, but it can serve as a good beginning for any portfolio construction.
Can investors do better? Yes, adding alternatives provides for a better return without adding volatility. The advantage of starting with the 60/40 blend is that it allows for a careful review of how to add new strategies to the portfolio. There is no major switching from risk-on to risk-off.
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