JPM's Bilton Sees 60/40 Returning 7.2% Over 10 Years

The video discusses the 60/40 portfolio strategy, which was previously considered ineffective but is now seen as viable for long-term investment. It highlights the importance of looking beyond short-term market fluctuations and focusing on long-term projections, with an expected return of 7.2% over the next decade. Despite recent market challenges, such as a significant drawdown and volatility, the underlying assets remain stable. The video encourages investors to plan for the long term, as current market conditions are resetting previous dislocations.

What was the general sentiment about the 60/40 portfolio strategy last year?

• It was believed to be risky.

• It was seen as a new trend.

• It was thought to be outdated and ineffective.

• It was considered highly effective.

What is the expected average return of a 60/40 portfolio over the next 10 years?

• 8.0%

• 6.0%

• 5.5%

• 7.2%

How much did the 60/40 portfolio suffer in terms of drawdown from top to tail?

• 10%

• 15%

• 25%

• 19%

What major event is NOT mentioned as a comparison to the current market situation?

• The 2008 financial crisis

• The 2012 European debt crisis

• The 2000 dot-com bubble

• The 2020 pandemic

What is the speaker's outlook on the long-term planning for portfolios?

• Short-term gains should be prioritized.

• Long-term planning is now feasible with current market conditions.

• The market is too volatile for long-term planning.

• It is too risky to plan long-term.