Investors have encountered difficulties with the traditional 60/40 portfolio of stocks and bonds due to inflation spikes in 2022 and 2023. These spikes resulted in poor performance as bonds did not provide the expected safety net.

Nouriel Roubini, the chief economist and portfolio manager of the Atlas America Fund, is advocating for a new type of safe asset that can withstand significant economic risks such as stagflation, deficits, and de-dollarization. Roubini recently discussed the outlook for the U.S. economy in 2025, highlighting potential risks that could impact financial stability. He focused on the implications of tariffs on inflation and the challenges of a fully stagflationary environment. Roubini also introduced his framework for creating a new safe asset and discussed the benefits of tokenizing an ETF, which could enhance investment strategies in a volatile economic landscape.