GDP Estimate Unchanged -- Trending Toward 3% -- February 8, 2025

Locator: 48508GDP.

Link here.

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My Favorite Chart

MMFs. 

$6.92 trillion.

Link here.

In case you missed it.

It's hard to believe we won't hit $7 trillion this year.

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60/40 Investing Is Dead

Link here.

Wow, I've said this for years on the blog, and "lived" it for more than 40 years of investing.

But not everyone is convinced:

That means bonds will no longer act as a buffer, but it also doesn’t mean investors should dump them in favor of stocks, says Jim Bianco of Bianco Research. He expects stocks to deliver a 6.4% annualized return over the next decade, a piddly showing compared with the two back-to-back 20%+ years for the stock market, and recommends keeping 40% in bonds. “What people need to do is stop thinking that bonds are crash insurance,” says Bianco. Instead, think of them as an income source and “a low-volatility, competitive alternative to a broad holding of stocks.”

Okay, 3% vs 6.4%. I guess that makes sense.