Ramin's 60/40 conundrum...

aroominyork

          

InvesterJones

I think the 60/40 portfolio in the first video that he says is 'dead' is the one using bond funds as a diversifier from equities, because he doesn't think they are inversely correlated enough. But in his own portfolio, now he doesn't need growth, he's using MMF (and then single gilts ladder) as a de-risker - gilts to maturity are uncorrelated, and MMFs are pretty uncorrelated too - they're certainly more predictable.

Back to knowing what you need to meet your goals, and picking a strategy to achieve that at the lowest risk.

leosayer

I had previously watched both videos but didn't pick up on the contradiction.

In the podcast video he says that increasing inflation is toxic for both equities and bonds that you would find in a typical 60/40 fund. This was evidenced back in 2022 when both equities and bond prices dropped.

In the Pensioncraft video he says he's moved 40% of his portfolio to a money market fund - looking to buy bonds if yields become better than cash. He's using his 60% global equity exposure to drive returns and beat inflation.

Surprisingly, he hardly mentions inflation risk and doesn't talk about index-linked bonds or annuities in either video.

Julezy101

He also mentions that he's not a big spender so doesn't feel the need to take any more risk than necessary. In essence he has enough money.

masonic

A good commentator should be able to argue from different perspectives. Much is unsettled in the world of investing.

aroominyork

I think he's starting to struggle to find subjects to fill 15 mins. Most videos used to be worth watching - these days there is more chaff among the wheat. I'm not criticising him as much as a world that demands an endless flow of content, which is more a challenge for video than for written formats such as Monevator.

InvesterJones

aroominyork said:

I think he's starting to struggle to find subjects to fill 15 mins. Most videos used to be worth watching - these days there is more chaff among the wheat. I'm not criticising him as much as a world that demands an endless flow of content, which is more a challenge for video than for written formats such as Monevator.

Well in this case he was asked about it so decided to make a video explaining his decision. There are even more videos for pensioncraft members.