David Picton, President and Portfolio Manager, Picton Mahoney Asset Management, joined us at the CETFA Mindpath ETF Conference.

The lifespan and sustainability of the 60/40 portfolio has been a subject great debate as both equity and bond markets ascend the late end of this market cycle. Investors are facing high equity valuations, low dividend yields, and low bond yields. Risk is rising, while expectations of future returns from both equities and bonds get cut.

How do you ‘fortify’ a traditional 60/40 portfolio?

Skip to: 04:23“Find other things that offset both the equities and the bonds, and particularly, in this environment, maybe something that acts differently in a rising rate environment, because we know a falling rate environment has benefited the 60/40 dramatically …”

“It’s ironic to me, that…”

Skip to: 05:05“It’s ironic to me, that almost all Canadians have exposure to a fairly sophisticated alternative strategy in their future retirement payouts, and yet its taken this long to get some of those tools on a more fair, or democratized level to anybody…”

In this enlightening conversation, David Picton shares his thoughts on the 60/40 portfolio, as well shedding light on what advisors and investors can do in the face of this challenging market environment, including how to make sense of using alternative investments.

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