Traditional Portfolio Strategies Are Changing: New Trends

Investors' New Tools

In recent years, individual investors have been distancing themselves from classic stock investment strategies and are turning towards more innovative and dynamic methods. JPMorgan, one of the leading banks in the U.S., reports that investors are seeking more attractive returns and effective hedging strategies, and thus focusing on building their own portfolios.

Decline of Multi-Asset Funds

JPMorgan's Chief Strategist Nikolaos Panigirtzoglou pointed out that interest in the traditional 60/40 portfolio allocation has been steadily decreasing among individual investors. The lack of appetite for bond funds has led investors to turn towards gold-backed equity funds. According to data, these multi-asset funds have experienced significant cash outflows for 13 consecutive quarters since 2022.

Correlation Between Bonds and Stocks

Panigirtzoglou stated that the failure of the correlation between equities and bonds to show a negative trend has made it easier for investors to create their own strategies. This situation has contributed to the reduced attractiveness of traditional, unbalanced multi-asset funds. As of 2023, balanced funds have only increased by 13.8%, and in 2024, they are expected to rise by 11.4%.

Investors' Search for Performance

While investors' tendency to see bonds as a safe haven has decreased, there has been an increase in interest in gold positions. By 2025, portfolios weighted towards equities and gold are expected to see a 17% increase in the S&P 500 Index, while gold futures have appreciated by approximately 65%.

Diversification Strategy Recommendations

However, Morningstar Portfolio Strategist Amy Arnott warned that this rise may not be sustainable. Arnott emphasized the importance of investors not only focusing on local markets but also on global equities, along with the consideration of value-based index funds and small-cap stocks.

Protection Against Inflation

Investors are also advised to include commodities and Treasury Inflation-Protected Securities (TIPS) in order to provide protection against inflation. In conclusion, diversification remains a fundamental strategy for investors.