Investment advice from JPMorgan

According to JPMorgan Asset Management, an investment strategy of allocating 60 percent of a portfolio to stocks and 40 percent to bonds is not losing its appeal; rather, it will yield higher returns than cash over the next 10 years.

In a report released by the institution, strategists stated that this strategy is expected to outperform cash by 4.1 percentage points annually and inflation by 4.5 percentage points over the next decade. They noted that this holds true even for money market funds, which are currently providing returns of more than 5 percent.

Recently, the benchmark for Bloomberg’s 60/40 model has fallen by approximately 4 percent since July, as volatility in bonds fueled simultaneous sell-offs in stocks and bonds, leading investors to turn toward safer assets.

According to JPMorgan’s analysis, 100 dollars held in cash will be worth only 133 dollars in 10 years. By comparison, the same amount invested in a 60/40 model portfolio would grow to 197 dollars over the same period.

News Source: 12punto