The study recommended shifting away from sovereign debt towards gold, private credit and infrastructure to build a regime-robust allocation.
The traditional 60/40 balanced portfolio has quietly stopped delivering the protection investors relied upon for a generation, as government bonds and equities continued to move in lockstep rather than hedging one another, according to a recent report published by Allianz Research titled ‘When bonds stop hedging equities: rethinking portfolio diversification.’ Allianz identified five distinct historical regimes governing equity-bond dynamics The study showed that the risk-adjuste