Investors have traditionally relied on a portfolio consisting of stocks and bonds, known as the 60/40 portfolio, which is designed to provide a natural hedge against market fluctuations.
This strategy faced challenges during the inflation spikes of 2022 and 2023, as bonds did not offer the expected safety cushion.
In response to these challenges, Nouriel Roubini, the chief economist and portfolio manager of the Atlas America Fund, is advocating for a new type of safe asset.
This asset, in the form of an exchange-traded fund, aims to withstand significant economic risks such as stagflation, budget deficits, and the potential decline of the US dollar's dominance.
Roubini also provided insights on the US economic outlook for 2025, highlighting various risks that could impact financial markets.
His perspective emphasizes the need for innovative investment strategies in an evolving economic landscape.