As 60/40 Investing Fails, Expect A 'Great Migration'
2026-05-12·via All Articles on Seeking Alpha
Summary
Larry McDonald explains why the traditional 60/40 portfolio is failing – and why investors should consider a significant allocation to commodities like gold, silver, base metals, and energy.
McDonald also warns of a potential "blowoff top" in AI and semiconductor names, arguing that these sectors are trading at unsustainable levels far above their moving averages.
He also critiques the "dark side" of passive investing, where major index sponsors may be indirectly force-feeding overvalued IPOs to unsuspecting 401k investors.
Looking ahead, the discussion focuses on the essential power infrastructure needed for the AI growth cycle, highlighting opportunities in uranium, natural gas, and "trapped gas" plays.
Finally, learn how even a small fraction of the trillions of dollars currently in the Nasdaq-100 could dramatically revalue hard asset and value plays in the coming years.
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By Mike Larson
In this episode, Larry McDonald joins the MoneyShow MoneyMasters Podcast to discuss what he calls the "Great Migration" of capital from tech and growth stocks into hard assets. The founder of The Bear Traps Report explains
