Jilek added, “People are wondering if fixed income can continue to provide risk reduction as well as returns.”
As fixed income sees more challenges, the traditional 60-40 portfolio becomes more outdated, the panelists said.
“It may have to become 60% equities, 30% fixed income and 10% alternatives,” Janasiewicz said.
Opportunities are opening up in emerging markets. “This is a good time for an active manager to take advantage of mispricing in emerging markets,” Schweitzer said.