As investors consider their options post the US Liberation Day tariff’s announcement and resulting volatility, investment giant KKR anticipates the traditional 60/40 stock and bond portfolio split will be reimagined, with the firm’s Henry McVey suggesting the addition of insurance as an asset class for its diversification benefits.
McVey, Head of Global Macro & Asset Allocation as well as the CIO of KKR’s Balance Sheet, and his team explore what recent financial market volatility means for investor priorities and portfolio mix.
With many large and institutional investor portfolios having tended to follow an often US-dominated 60/40 approach, the KKR team believes that in the wake of the tariff announcements and having seen how US equities and bonds are performing, now is the time for allocators to reconsider their approach, reimagining the 60/40 status-quo.
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