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Bank of America forecasts a lost decade for the traditional 60/40 stock-bond portfolio, projecting near-zero returns after inflation. The bank is advising clients to consider six alternative "satellite" investments to navigate stretched valuations and shifting market dynamics.
Recent analysis from quantitative firms challenges the effectiveness of the popular "buy the dip" investment strategy, suggesting that buying stocks near their 52-week highs has historically yielded better returns. This debate comes as the AI-driven market rally forces a reassessment of traditional valuation and portfolio models.