Jon Deane: Should gold replace bonds in the 'new' 60/40?

Portfolio diversification is a vital part of any modern investment strategy. But it's the 60/40 rule—an asymmetrical allocation to stocks and bonds respectively—that has really captured the hearts, minds and capital of retail and fiduciaries alike over the past century. The rule has returned a stable yield of around 10.7% per annum since the 1950s. In fact, on average, the strategy has limited downdraws to ~20% within a year. It has done so by leveraging the negative correlation between stocks and bonds, allowing investors to lean on the higher risk/reward ratio of equities, while remain...