Regime Change: The Benefits of Private Credit in the ‘Traditional’ Portfolio

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We continue to believe that, in the new macroeconomic regime we have entered, the positive correlation between stocks and bonds will likely be problematic over the long-term for the traditional 60/40 portfolio. As such, we think that the 40/30/30 framework can improve overall risk-adjusted returns as well as portfolio diversification better than the traditional 60/40, especially …