Bank of America strategists are urging investors to rethink the classic 60/40 portfolio—specifically the 40% usually reserved for bonds. With inflation running hot and bonds delivering negative real returns over the past few years, they suggest reallocating a portion of that fixed-income slice into commodities like gold and silver.
Why the shift? Commodities have outperformed since 2020, and structural forces like deglobalization, rising debt, and the green energy transition could keep inflation elevated for years to come. While bonds still have a role during economic downturns, metals and other real assets offer long-term protection and potential upside.
