Energy Asset Transformation: Strategists Propose Replacing Traditional Bond Allocation with "Energy + Metals"

Wallstreetcn
2025.12.17 13:39

Louis-Vincent Gave, co-founder and CEO of Gavekal Research, believes that due to structural inflation, the traditional "60% stocks + 40% bonds" portfolio is no longer applicable. He suggests replacing the 40% bond allocation with energy (20%) and precious metals (20%). This portfolio is expected to yield a return of approximately 21% in 2025, significantly outperforming the traditional portfolio, which is around 11%. Energy stocks currently offer high dividends, scarcity (due to stagnation in refinery construction), and inflation-hedging properties, and are seen as "bonds of the new era."

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