59/38/3 Portfolio

Is the 6/40 portfolio dead? Should you consider a 59/38/3 portfolio?

Classic 60/40 Portfolio

In a classic 60/40 portfolio you allocate 60% of your assets to stocks and 40% to bonds. When when stocks do well, bonds don't and vice versa. The 60/40 allocation gives you a balance of risk and return.

Enter crypto.

Crypto

Crypto and crypto markets came on the scene in 2009 with the release of Bitcoin: A Peer-to-Peer Electronic Cash System white paper. Since we have seen the rise of other cryptocurrencies like Ethereum ETH and many others. The crypto markets exhibit much more volatility than the NASDAQ or S&P 500, but potential for high returns draws curiosity.

Distributed Ledgers, Blockchains, and Bitcoin

I recently took the Distributed Ledgers, Blockchains, and Bitcoin course from RIA Channel taught by Keith Black. The course is a great history, financial, and crypto overview. I gained insight into finance in general, and specifically how crypto could fit into a portfolio.

59/38/3 Portfolio

There are a lot of fascinating things in the RIA crypto course, but one thing that stood out to me was that allocating a portfolio as 59% stocks, 38% bonds, and 3% crypto. In the course Black argues (with numbers to support) that a 3% allocation to crypto has the potential to increase your returns without increasing volatility. Amazing.

Conclusion

As always do your due diligence. Consider giving the RIA course a try and see if a 59/38/3 portfolio is right for you. Everyone is different, but learning about different investment classes and strategies can only help you make better decisions.