Hedge-fund giant Man Group questions whether 60/40 ever worked

Bloomberg/Vildana Hajric and Michael P. Regan/4-16-2021

photo of gold bars and $100 bills

“Where we are now is a bit different. We’re in a universe of equities and bonds going down together. There’s a lot of instability. That instability is disconcerting. If they’re both going down, I need to find things that don’t behave like bonds and equities, which means commodities.” – Peter van Dooijeweert, Managing Director, Man Group

USAGOLD note: During a time of secular currency debasement, both stocks and bonds lose value simply on a purchasing-power basis if they do not keep up with or better inflation. Bonds, at present, are in particularly dire straits losing both principal and purchasing power at the same time. In a separate study posted last June, Man Group lists gold and silver as two assets to which investors fled during past episodes of inflation and were rewarded with double-digit returns. The firm also suggest acting sooner rather than later. Man Group is the world’s second largest hedge fund behind Bridgewater Associates. Bridgewater also holds a large position in commodities.

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