Apollo Global Management says 60/40 portfolio is dying

Leading wealth‑management strategists argue that the traditional 60/40 mix of equities and bonds is no longer effective. Inflation and low real yields on sovereign bonds have broken the historic negative correlation that protected portfolios during market downturns. Apollo Global Management’s chief economist Torsten Sløk stated that “60/40 is no longer working,” urging investors to replace public‑bond exposure with high‑quality private‑credit allocations.

The shift is prompting a broader realignment in global wealth management. High‑net‑worth individuals and institutions are moving toward private‑credit and private‑equity strategies, which offer floating‑rate returns and higher long‑term growth potential. At the same time, large financial firms are accelerating mergers and acquisitions of boutique registered investment advisors to expand their capabilities, diversify revenue, and deploy advanced AI‑driven tools. The trend reflects a move away from simple balanced portfolios toward multi‑asset, private‑market‑focused solutions amid persistent inflation and geopolitical volatility.