Fidelity Director Proposes 60/20/20 Portfolio with Bitcoin Allocation

Jurrien Timmer, Global Macro Director at Fidelity, has proposed a new portfolio allocation model that replaces the traditional 60/40 split. According to Timmer, the old 60/40 setup, which consisted of 60% stocks and 40% bonds, is no longer suitable for investors.

Timmer suggests a new 60/20/20 split, where 60% goes to equities, 20% to bonds, and 20% to alternative assets. This change has been in place since the pandemic, but Timmer sees no reason to switch things up right now.

Alternative assets include gold, commodities, cash, Bitcoin (BTC), REITs, and managed futures. Timmer notes that BTC's correlation with the S&P 500 is relatively low at 30%, making it a potential diversifier for investors.