Brandywine October 2021 Commentary: “Glory Days with 60/40”
Brandywine Asset Management commentary for the month ended October 2021, titled, “Glory Days with 60/40.” Q3 2021 hedge fund letters, conferences and more A “Smarter 60/40”For the past 40 years the 60% stocks/40% bonds portfolio produced impressive performance, with returns over 9% and a maximum loss that was 1/3 less than that of the S&P 500. But during those 40 years, the cyclically-adjusted price/earnings ratio (“CAPE”) for the S&P 500 swelled from 7.8 to more than 38 today. Similarly, the 10-year U.S. treasury note yield collapsed from its peak at over 15% in 1981 to just 1.6% today. So it...