Rising Interest Rates: How to Realign Your Portfolio

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Is the 60/40 Portfolio Is Obsolete?
The traditional 60/40 portfolio of 60% stocks and 40% bonds has been a staple of investment advice for decades. But in 2022, it failed to deliver the goods, declining about 16%.
Mark Cortazzo says that the rapid rise in interest rates has caused a "massive change" in fixed-income returns. This means that traditional safe assets are back, and it's time to reset portfolios.
Cortazzo is a Senior Vice President and Financial Advisor with the Wealth Enhancement Group. He has over 30 years of experience in the financial industry and has been named a Barron's Top Advisor for thirteen years.
Cortazzo discusses the massive reset in returns and what it means for investors. He also provides tips on how to realign your portfolio for the new environment.
00:00 Hello
00:45 Introduction
01:58 Interview with Mark Cortazzo
20:50 One Investment
24:08 Action Point
WEALTHTRACK episode 2011 broadcast on September 8, 2023
More Info: wealthtrack.com/rising-intere...
Bookshelf:
- Your Future Self: How to Make Tomorrow Better Today : amzn.to/3P2MI4o
- The Four Pillars of Investing, Second Edition: Lessons for Building a Winning Portfolio: amzn.to/3r2osYf

Пікірлер: 21

@michaelswami 8 ай бұрын

Every interview on Wealthtrack is a treat, even when it is on boring dull fixed income.

@jamesmorris913 8 ай бұрын

He mentions William Bernstein..and I must say that after reading and listening to GOBS of retirement financial-survival advice..Dr. Bernstien's advice, makes the most overall sense, to me!

@AlvynRamsay-rl2vj 8 ай бұрын

Watching wealth track with Mark Cortazzo gives reasons why diversification is a key word in any investment.

@PH-dm8ew 6 ай бұрын

Love this guy. Great ideas. Bonds aren’t supposed to be an income generator, they are a decline dampening agent.

@Tonymanero1960 8 ай бұрын

Mark Cortazzo is a beast,.......always gives rock-solid opinions and advice.

@janesmith506 Ай бұрын

Thanks for the good ideas and advice on how to plan for risk in your portfolio. I especially like Mr. Cortazzo’s insight that with fixed income available at 5%, we can use a 60/40 portfolio to get 8% average return with all the volatility of an all-stock portfolio. Great way of looking at it; helped me clarify my ideas.

@PassivePortfolios 8 ай бұрын

If your fixed income allocation is to serve as a diversifier to stocks, don't take on duration and credit quality risk.

@detectiveofmoneypolitics 8 ай бұрын

Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank

@radicalaccounting 8 ай бұрын

He was funny when he said, "you have drift'. Things are drifting all right, lol.

@scipioafricanus4875 8 ай бұрын

Thanks!

@paulmgadola 8 ай бұрын

Inflation was about 5% on average during the last 12 months. 10-year treasury is at 4.3 %. How can you promote fixed income investments, if the real interest rate is still zero or even negative? Fixed income investments are interesting only, if the real interest is 2% or above. Otherwise, you just loose real money….. Good companies can increase prices and earnings in line or above the inflation. This means that a good stock with a P/E of 20 (e.g. 5% FCF rate). will be the much better investment for the next 10 years.

@junzhang2087 8 ай бұрын

He is promoting 60:40 balanced index

@y.r.9401 7 ай бұрын

@@junzhang2087Do you agree? My FA advised a different balance!

@davidduffy2046 8 ай бұрын

A big assumption is that bond rates are going to remain high

@rokyericksonroks 8 ай бұрын

Peter Thiel has five billion USD$ in his Roth IRA, but we see no need for reform here in the US.

@royprovins7037 8 ай бұрын

If bond rates stay this high stock returns won't be anywhere near what they were

@an-opinion 8 ай бұрын

Stocks (staples) will be lot higher; discretionary will underperform.

@mr2981 8 ай бұрын

This is silly. 2022 was a bad year for equities, and a bad year for bonds and anything rate sensitive because of rapid and unexpected inflation and fed rate increases. So what, it happens. But that has already occurred. interest rates have likely either peaked or nearly peaked, so it's too late to "realign", and it would be foolish to design a portfolio to, as they say, fight the last war.