GAM Investments strategist urges alternatives to long-dated Treasurys

by@CNBC

Summary

Investors are advised to reconsider traditional long-dated U.S. Treasurys for portfolio protection as rising yields diminish their diversification benefits, according to Julian Howard, chief multi-asset investment strategist at GAM Investments. In an appearance on CNBC's "Squawk Box Europe," Howard highlighted alternatives such as shorter-dated Treasury bills, gold, insurance-linked securities, and mortgage-backed securities, recommending a diversified approach as the year-end approaches. This shift aligns with recent insights from BlackRock's Fabio Osta, who indicated that the market is moving away from the conventional 60/40 equities-and-bonds mix toward private markets amid ongoing supply shocks and inflation pressures, making the need for robust portfolio strategies increasingly relevant.

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Analysis

Julian Howard: Julian Howard is the chief multi-asset investment strategist at GAM Investments. He appeared on CNBC's Squawk Box Europe to discuss diversification challenges amid rising yields. Howard highlighted the need for robust portfolio protection beyond traditional long-dated Treasurys. GAM Investments: GAM Investments is an asset management firm focused on multi-asset strategies. Julian Howard serves as its chief multi-asset investment strategist and has guided recent portfolio adjustments. In this news, the firm has taken profits from a long equity rally to strengthen defensive allocations ahead of year-end 2026. Market Trends: Earlier this month, BlackRock's Fabio Osta noted that markets are moving away from the traditional 60/40 equities-and-bonds mix toward private markets for new growth opportunities. Portfolio Strategy: The historically negative correlation between equities and bonds has become less dependable amid supply shocks, inflation pressures, and bond market volatility heading into late 2026.

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