Slowing economic growth, rising inflation, and ongoing market volatility sparked by the Russia-Ukraine

war are upending investors portfolios.

Does that mean we expect the lost decade?

No. Does that mean we expect possibly that a 60-40 portfolio will deliver

less than the average real return we've seen in the last hundred years, which is around 5%

per annum? I think yes. I think it would be much more difficult

to achieve that 5% real return,

which we had over the long run

and certainly quite difficult to get anywhere close

to where we were in the last cycle.

I'm Allison Nathan, and this is exchanges at Goldman Sachs. For decades investors have relied on a 60-40 portfolio, a mix of 60% stocks and 40

bonds for steady growth and income. But rising

statulation risks are raising the possibility of a lost decade for

investors in these balanced portfolios. Today we'll discuss how investors

are rethinking their portfolio strategies in the current market environment.

To do that, I'm joined by Christian Mueller Glistman, who heads asset allocation research efforts within portfolio strategy in Goldman Sachs research, and Maria Bassalu, research

and Maria Bassalu, co-chief investment officer of the multi-asset solutions group

within our asset management division.

Christian, Maria, welcome to the program.

Thanks for having me. Thank you, Allison. division. Christian, Maria, welcome to the program.

Thanks for having me.

Thank you, Allison.

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