A challenged 60/40 highlights the need for alts
The 60/40 may have thrived in the past, but today, alternative investments appear better-positioned across these four key metrics.
![](https://fsinvestments.com/wp-content/uploads/2024/07/COTW_2024-07-26_v1_thumbnail-247px.jpg?w=250&h=150&crop=1)
Cash left behind amid rapid market rotation?
Money market fund AUM is rising, even as yields decline, setting up an environment where investors could be subject to significant opportunity cost.
![Line chart showing money market funds assets under management growing steadily since January 2023, from $4.9 trillion to just over $6.1 trillion as of July 2024. While investors have been plowing money into cash, Treasury yields have stepped down -55 basis points since mid-April. Declining inflation readings suggest cash could also become less attractive.](https://fsinvestments.com/wp-content/uploads/2024/07/COTW_2024-07-19_v1_thumbnail-247px.jpg?w=250&h=150&crop=1)
As advisors redeploy cash, alternatives are in focus
Advisors expect to reduce their clients’ cash allocations this year. Alternatives, multi-asset and real asset investments are among the major beneficiaries.
![Column chart showing where advisors plan to redeploy cash, highlighting multi-asset, alternatives and real asset investments as key beneficiaries.](https://fsinvestments.com/wp-content/uploads/2024/05/COTW_2024-05-02_thumbnail-247px.jpg?w=250&h=150&crop=1)
Flat returns for core fixed income over five years
The Agg’s returns are flat since April 2019. Persistent inflation amid firm growth provides a challenging outlook for core fixed income.
![Line chart showing the Agg generated a flat return since April 2019 as it was whipsawed by a volatile rate environment. Recent inflation data could portend further challenges.](https://fsinvestments.com/wp-content/uploads/2024/04/Image20240502130505.jpg?w=250&h=150&crop=1)
Private and public company earnings taking divergent paths
This week’s chart looks at a shifting opportunity set as the private middle market shines while small cap company earnings remain challenged.
![Line chart documenting shift from 2012 to 2024, highlighting the recent strong private middle market revenue growth trajectory with increasingly negative small cap earnings.](https://fsinvestments.com/wp-content/uploads/2024/02/COTW_2024-02-23_thumbnail-247px.jpg?w=250&h=150&crop=1)
Family offices plan material increase to private markets
This week’s chart looks at family office CIOs’ plans to increase allocation to alts in 2024, specifically private credit and private equity.
![COTW-2024-02-16 thumbnail](https://fsinvestments.com/wp-content/uploads/2024/02/COTW_2024-02-16_thumbnail-247px.jpg?w=250&h=150&crop=1)