Why 90/60 Is the New 60/40

The video discusses the ongoing debate between active and passive investing, focusing on a new twist to the traditional 60/40 portfolio. Jeremy Schwartz introduces the 90/60 balanced fund, which leverages equities and bond futures to provide $1.50 of exposure for every dollar invested. The fund targets institutional investors seeking diversification. The idea originated from a Twitter conversation and has been validated by market feedback and endorsements from industry leaders like Cliff Asness.

What is the traditional 60/40 portfolio model?

• 60% real estate, 40% commodities

• 60% bonds, 40% equities

• 60% equities, 40% bonds

• 60% cash, 40% stocks

How does the 90/60 balanced fund differ from the traditional 60/40 model?

• It focuses solely on equities.

• It includes real estate investments.

• It leverages 90% equities and 60% bond futures for $1.50 exposure per dollar.

• It invests 90% in bonds and 60% in equities.

Who is the primary target audience for the 90/60 balanced fund?

• Institutional investors

• Individual retail investors

• Cryptocurrency traders

• Real estate developers

What is a potential risk scenario for the 90/60 fund?

• When both stocks and treasuries rise

• When both stocks and treasuries fall

• When only stocks rise

• When only treasuries fall

How did the idea for the 90/60 fund originate?

• From a financial conference

• From a university research paper

• From a government policy

• From a Twitter conversation

What role did social media play in the development of the 90/60 fund?

• It was used for advertising the fund.

• It was used to recruit fund managers.

• It provided financial backing.

• It was a platform for initial idea discussions.

What is a benefit of discussing financial ideas on platforms like Twitter?

• It allows for private discussions.

• It limits the audience to professionals only.

• It provides guaranteed investment returns.

• It enables public and honest discussions.