Chris Cole on Macro Voices Podcast - February 2020
On a Macro Voices podcast episode, Chris Cole, Founder and CIO of Artemis Capital Management, discusses the plausibility of a 60/40 portfolio performing well in future decades and how the value of non-correlated assets isn't always easy to see by looking at performance statistics.
- Looking at the past 40 years and extrapolating the performance of stocks and bonds into the future is a mistake.
- Investments that are non-correlated to the growth cycle should be added to the portfolio.
- In order to identify effective non-correlated investments, we need to evaluate how the overall portfolio performance changes when a single investment is added or removed.
The trillion dollar question we need to ask ourselves is: is this repeatable or not?
You're much better off investing in something that's non-correlated to the growth cycle and non-correlated to equities, like volatility, like commodity trend, like gold, than you are adding something like private equity which is correlated to the growth cycle.