Bonds in the interest rate trap: Why the classic 60/40 strategy has had its day
Bonds pay -1.2% real return. The 60/40 strategy is dead. Huber shows: asset-focused allocation is now essential.
What you'll take away from this article
- How to apply the core concepts from this article to your financing strategy
- Which concrete steps you can take next — practical and actionable
- Why this knowledge gives you a measurable advantage in raising capital
Why the classic 60/40 strategy is deadly
Huber shows with data (Figure 61, 62): Bonds are no longer safe. You no longer pay interest.
-1.2%
Real yield of German 10-year bonds
If you buy a bond that pays 1.5% but inflation is 2.7%, you lose 1.2% per year in purchasing power. This is the mathematical reality.
Real bond yields: nominal minus inflation
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Akademische Quelle: Master Thesis
Entwicklung einer optimalen Asset Allocation in Zeiten expansiver Geld- und Fiskalpolitik
Daniel Huber, M.A. — Hochschule Mainz, 2020 | Betreut von Prof. Dr. Arno Peppmeier
13.174 Wörter · 92 Abbildungen · 39 Tabellen · Markowitz-Effizienzlinienanalyse
Vollständige Thesis herunterladen (PDF, 6 MB) →
Daniel Huber, M.A. — Hochschule Mainz, 2020 | Betreut von Prof. Dr. Arno Peppmeier
13.174 Wörter · 92 Abbildungen · 39 Tabellen · Markowitz-Effizienzlinienanalyse
Your advantage after this article
What you now know — and how to use it
- You know the core concepts and can apply them directly to your situation
- You know which mistakes to avoid — saving you time and capital
- You understand how this building block fits into your overall strategy
Ready for the Next Step?
In 30 min, Daniel Huber shows which capital strategy fits your situation.
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