Gyroscopic Investing

As if on cue given discussion about our quiet forum, The Wall Street Journal just published an article entitled "Three Alternatives to the Classic 60/40 Portfolio to Consider Now" and the first portfolio featured is the 4x25 PP (the other two are the All-Weather Portfolio and the 30/70 Flip Portfolio). Here are a few quotes:

"Dividing your portfolio equally in four asset categories—stocks, bonds, commodities and cash—is a well-balanced long-term diversification strategy for investors to consider..."

"This investment strategy is designed to perform well across various economic conditions including expansion, recession, inflation and deflation by balancing risk across a range of asset classes. The focus is on resilience and capital preservation as well as total returns..."

Perhaps we'll have more visitors soon.

Ha!

Oh no! Is this a sign of a top?

I’m curious about that 30/70 Flip portfolio mentioned in the article.

His rationale: Higher interest rates and high stock valuations imply a narrow equity premium—the additional return investors expect from stocks compared with risk-free government bonds. Investors can achieve a similar rate of return with less risk investing in a variety of fixed-income and stock investments.

It’s not for me, but it’s an interesting idea.

Xan wrote: ↑Sun Sep 07, 2025 11:58 am Oh no! Is this a sign of a top?

Some may think this a contrarian strategy considering that the stock market has been hitting record highs. But that could also be a signal the market is nearing a correction, some financial pros say.