Fidelity's Timmer Ditches 60/40 for 60/20/20, Makes Room for BTC

Fidelity's Global Macro Director Jurrien Timmer is shaking up the traditional 60/40 portfolio, which has been the norm for decades. The new model allocates 60% of a portfolio to equities, 20% to bonds, and 20% to alternative assets.

This change occurred after the pandemic, and Timmer doesn't see a reason to switch back now. He views this allocation as a 'rough example' rather than investment advice.

In the new 60/20/20 model, alternative assets include gold, commodities, cash, Bitcoin (BTC), REITs, and managed futures. The inclusion of BTC is significant because its correlation with the S&P 500 is only 30%, making it a diversifier in the portfolio.