Energy stocks are the new bonds, this strategist argues
Louis-Vincent Gave, CEO of Gavekal Research, argues that the traditional 60-40 portfolio model is outdated due to inflationary policies. He suggests a new model with 60% equity, 20% precious metals, and 20% energy, which has outperformed the traditional model this year. Energy stocks are seen as a hedge against inflation, similar to bonds in the 1980s. However, concerns remain about their performance in recessionary times.
