Is your "balanced" portfolio actually diversified?
During the 2022 rate-hike cycle, traditional 60/40 portfolios suffered a maximum drawdown of –20.51% alongside broad equities. Why? Because post-pandemic macro regimes flipped stock-bond correlations from negative (–0.100 average) to positive (+0.289 average).
Leaving the fixed-income sleeve on autopilot no longer works. Investors must extend active, tactical management to bonds and incorporate real assets to build real resilience.
Check out the full research highlight by AWAIM Research: AWAIM Research: Rethinking the '40'