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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

Saying Goodbye to an Old Friend, the 60/40 Portfolio

Saying Goodbye to an Old Friend, the 6040 Portfolio

Portfolio Construction Must Adapt to New Realities

As the investment landscape evolves, traditional low-risk assets like Treasury bonds have become less appealing due to their near-zero yields, posing challenges for investors seeking stable, low-risk income. These bonds now offer minimal income and little diversification benefit during equity downturns, making them less effective as a stabilizing force in balanced portfolios. This shift demands a strategic reassessment of asset allocation to include more robust alternatives that can better manage risk and enhance returns amid potential inflation.

In light of these developments, financial advisors are steering clients away from traditional bonds towards alternatives that promise better cash flows and are resilient against inflation. Real estate investments stand out as a particularly attractive option due to their potential for higher returns and their ability to appreciate in value during inflationary periods. Nonetheless, given their lower liquidity and higher volatility compared to bonds, these investments are most suitable for those with longer-term investment horizons.

Investing in stabilized apartment buildings can significantly outperform traditional Treasury yields, offering both a higher income and a hedge against inflation. This shift can better align investment portfolios with the current economic realities, providing both higher returns and improved risk management.

Access the entire article to deepen your understanding of how shifting from traditional Treasury bonds to alternative investments like real estate can enhance your portfolio's performance in the current economic climate. Learn more about the potential for higher returns and improved risk management through diversified asset allocation.

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Table of Contents

  • Portfolio Construction Must Adapt to New Realities

  • Asset Allocation Must Adapt to New Realities

  • How to Adapt?

  • How Can HP Ventures Group Help?

Thanks to our Contributor

HP Ventures Group

HP Ventures Group LLC - Development Services is a real estate asset management firm, focusing on multi-family properties in the Chicago region. HP manages all facets of a property’s life cycle, from acquisition, through development, to property management. Our properties include high-end residential and mixed-use buildings.


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