Don’t Trust 60/40 Portfolio, Blumenthal on theStreet

Steve Blumenthal, CEO, CMG Capital Management Group on theStreet talking about an alternative to the traditional 60/40 stock-bond portfolioSteve Blumenthal, CEO of CMG Capital Management Group, talked to Gregg Greenberg at theStreet in New York yesterday (video below). The market is  overvalued by 20% after last year’s rally and bond yields remain at record lows, so the traditional 60/40 stock/bond split is not optimal, says Blumenthal, portfolio manager for the CMG Global Equity Fund. Blumenthal says a better way to allocate assets is 33% in stocks, 33% bonds and the final 34% in a tactical trading portfolio. His most recent tactical trades are going long the SPY and TLT exchange traded funds, as well as the Pro Shares Ultra Short Yen ETF.

CMG Capital Management Group calls the concept of converting the traditional 60/40 portfolio to 33/33/34 Enhanced Modern Portfolio Theory. Blumenthal believes it represents what a balanced portfolio should look like in today’s market. CMG Capital Management Group has approximately $500 million in AUM in tactically managed accounts and strategies.
See the video below or on theStreet at Don’t Trust the Traditional 60/40 Portfolio Split