Sébastien Page, CFA, head of the Global Multi-Asset division at T. Rowe Price and author of “Beyond Diversification,” discusses the importance of asset allocation and diversification, why investors should go beyond diversification, and whether the 60/40 portfolio is dead.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.
Episode Transcript (PDF)
Episode Breakdown:
1:43 Why Sébastien decided to write the book, “Beyond Diversification”
4:44 The motivation behind giving all proceeds from the book to the T. Rowe Price Foundation
5:45 Key themes that both advisors and investors can learn from the book
7:33 Why should investors go beyond diversification, and what wrong with diversification?
10:56 How can investors determine stock-bond mix?
14:13 Is the 60/40 portfolio alive or dead?
22:39 Are we paying enough attention to fat tails?
26:36 Sébastien’s tactical views on capital markets?
32:01 Sébastien’s LinkedIn view of teaching his daughter the basics of investing
34:40 Closing questions:
- One positive, long-lasting change that Sébastien hopes to see as a result of the COVID-19 pandemic
- One item Sébastien would take with him on a long-duration space flight
- Flight vs. invisibility? Which do you pick, and what do you do with your superpower?
Related articles and links:
- Book: Beyond Diversification
- 60/40 headline: Kiplinger
- 60/40 headline: PIMCO
- 60/40 headline: Forbes
- 60/40 headline: Morningstar
- 60/40 headline: LinkedIn post
- 60/40 headline: Sébastien’s LinkedIn video with his daughter