We believe that a fortified approach to portfolio construction is fundamental to helping investors achieve their investment goals with greater certainty. To help advisors build stronger, more resilient investor portfolios, we have compiled a tip sheet of seven actionable ideas we call the BARBELL approach to portfolio construction.
As an advisor, why would I want to
rethink how I build client portfolios?
Shorter and sharper economic cycles may drive stock and bond volatility higher
Stock and bond returns are expected to be lowered amid higher, more volatile inflation
Stocks and bonds may not diversify one another, creating “single asset” portfolios
It all adds up to a meaningful shift in market regime, where doing nothing may amount to investors assuming more risk in their portfolios.
These seven actionable ideas in the BARBELL approach offer a widely applicable framework for constructing portfolios with the potential to achieve investor goals more efficiently and across a broader range of economic and market scenarios.
Some may seem unconventional, but they’re all grounded in research from our portfolio construction experts. Implement them selectively and in whatever sequence best suits your clients’ unique needs.
This information has been published by Picton Mahoney Asset Management (“PMAM”) on February 9, 2024. It is provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by PMAM, nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
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