Swan Bitcoin: Your 60/40 Portfolio Failed When You Needed It Most

The classic 60/40 portfolio (60% stocks, 40% bonds) is becoming obsolete because the bond “stability” sleeve depended on a past regime of falling rates, contained inflation, and credible sovereign balance sheets. He points to 2022 as the wake-up call when both stocks and bonds fell and bonds delivered their worst modern performance, revealing bonds as conditional hedges that can become purchasing-power losers when inflation is hot and rates reprice upward. With rising debt, higher refinancing costs, and yields that may lag money-supply growth, he says investors must rethink safety and seek assets outside the sovereign promise structure. Livingston frames Bitcoin as a scarce, politically neutral monetary asset increasingly entering portfolios via spot ETFs and institutional adoption, and...