50/30/20 is the new 60/40 for portfolios, BNY executive Jose Minaya says

An executive at Bank of New York Mellon Corp. has proposed a new approach to portfolio allocation, advocating for a 50/30/20 split. Jose Minaya, the global head of investments and wealth at the bank, believes that traditional approaches like 60/40 or 70/30 may no longer be sufficient in today’s sophisticated markets.

In a recent interview on the “Masters in Business” podcast with Bloomberg, Minaya explained his preferred asset allocation model of 50% stocks, 30% bonds, and 20% alternative investments. He emphasized the importance of diversification across different asset classes, including alternative investments like hedge funds, real estate, and commodities.

Minaya pointed out that the increasing complexity of markets requires investors to have access to a variety of assets for better outcomes. He also highlighted the importance of investing in diversified businesses that are capable of leveraging AI technology in their wealth management services.

According to Minaya, the future winners in investing will be those businesses that can effectively combine AI with wealth management. He mentioned BNY’s use of AI agents to build and manage portfolios, noting that AI can analyze vast amounts of information to make informed investment decisions.

In conclusion, Minaya emphasized the synergy between human expertise and AI technology in the investment process. He believes that a combination of human intelligence and AI capabilities will lead to superior investment outcomes. For more information on Minaya’s insights, you can read the original article on Business Insider.