Julian Howard, chief multi-asset investment strategist at GAM Investments, emphasized the need for investors to rethink their portfolio diversification strategies as they approach the end of 2026. He noted that the traditional 60/40 equities-and-bonds mix is becoming less effective due to rising yields on long-dated U.S. Treasurys, which are losing their appeal as a safe haven.
Instead, Howard recommends considering shorter-dated Treasury bills, which currently yield around 4%, as a more reliable option. He also highlighted gold, insurance-linked securities, and mortgage-backed securities as viable alternatives that can provide better protection against market volatility. The yields on 2-year U.S.
Treasurys were reported at 4.937%, while 6-month and 3-month T-bills yielded 4.446% and 4.224%, respectively. Howard's insights reflect a broader market trend, as other financial experts, like Fabio Osta from BlackRock, also suggest a shift away from the traditional portfolio mix towards private markets and alternative investments driven by new growth opportunities, including those related to AI