Beyond the 60/40: Why Today’s Investors Are Looking to Alternatives
For decades, the 60/40 portfolio—60% stocks, 40% bonds—was the go-to strategy for long-term investors. It worked well in a world of stable interest rates, moderate inflation, and broad diversification across public markets.
But let’s be honest: we’re not in that world anymore.
⚠️ The 60/40 Model Has a Problem
In today’s environment, traditional portfolios face headwinds that simply didn’t exist in the past:
Interest rates are all over the place. Bonds—once a dependable ballast—are no longer a sure bet for downside protection. And with over 30% of U.S. Treasuries held by foreign governments and investors, their behavior is less predictable than ever.
Public equity valuations are stretched. A handful of tech giants dominate the market, creating concentration risk and reducing true diversification.
Inflation and taxes are eating into real returns. If you’re not actively planning for these, your portfolio could be quietly eroding.
You’re limited to public markets. And that means you’re potentially missing out on powerful private market opportunities that many high-net-worth investors are already accessing.
That’s why more investors are rethinking their approach—and leaning into alternative investments.
🧠 How Alternatives Fit In
Alternatives aren’t just for institutional investors anymore. They’re now a critical part of modern portfolio construction, especially for accredited investors looking to build wealth with more stability, tax efficiency, and true diversification.
Here’s how they work:
📊 A More Modern Portfolio (Sample for Accredited Investors)
Here’s how some high-net-worth investors are reallocating:
40% Public Equities – for growth and liquidity
20% Fixed Income – for lower volatility income
40% Alternatives – for enhanced yield, tax deferral, and real diversification
Diversification today isn’t about owning more stocks. It’s about owning different return drivers.
🔐 Why It Matters
Smoother Ride: Alternatives can help reduce overall portfolio volatility
Tax Smarts: Strategies like DSTs and private real estate offer powerful tax advantages
Income Focused: Private credit and real assets can generate reliable income
Access Matters: Many of these opportunities aren’t available in public markets
Let’s Build a Smarter Portfolio Together
The world is changing—and so should your investment strategy. Alternatives can provide the tools to protect and grow your capital, especially in uncertain markets.
At Forecast, we specialize in helping accredited investors access high-quality alternative investments. If you’re looking to explore private credit, 1031 DSTs, hedge funds, or real estate strategies, we’d love to walk you through how they might fit into your overall plan.
Let’s talk about what diversification really looks like in today’s world.
