South Korea’s Shinhan recommends 2% digital asset portfolio allocation

Shinhan Investment Securities has proposed allocating 2% of investment portfolios to digital assets as the traditional 60% stock and 40% bond strategy struggles to provide the diversification investors once expected. Summary Shinhan Investment Securities has proposed allocating 2% of investment portfolios to digital assets and 8% to alternative assets. The recommendation followed an analysis that found an 8 to 2 split between gold and Bitcoin produced relatively favorable risk adjusted results. Senior researcher Park Woo yeol said stocks and bonds have increasingly moved together, reducing the defensive benefit expected from a traditional 60/40 portfolio. Park said competition between traditional finance and crypto platforms is increasing as digital asset exchanges expand into stocks and ETFs. According to Yonhap News Agency, Shinhan Investment Securities senior researcher Park Woo-yeol outlined the allocation during a press briefing at the Korea Exchange in Yeouido, Seoul, on Sept. 8, arguing that stocks and bonds have increasingly moved in the same direction. The conventional 60/40 portfolio relies partly on bonds cushioning losses when equities decline. Park said that relationsh...