The New 60/40
Charlie Madden@charliemadden
· 1
−1.8%
since Oct 2
The idea
I believe bonds no longer do their job, so I rebuilt 60/40 with digital credit standing in for fixed income. The equity sleeve leans into big tech growth through QQQ alongside core S&P 500 and international exposure, skipping small caps entirely. The income sleeve spreads across bitcoin-backed preferreds and convertibles from two issuers, betting that bitcoin collateral plus ongoing currency debasement lets these coupons pay more than Treasuries can, with a small cash buffer kept aside.
What it owns
- The growth engine of the take, concentrated in large US technology companies rather than broad market exposure. · Invesco QQQ TrustIt holds the largest US technology companies, serving as the anchor for concentrated growth exposure in the take., Vanguard S&P 500 ETFIt provides large-cap US ballast around the technology concentration without adding smaller companies to the equity sleeve.40%
- Fixed and variable rate preferreds paying income from bitcoin collateral, functioning as the modern replacement for traditional bonds. · Strategy Inc Variable Rate Series A Perpetual Stretch PreferredIt pays variable monthly income backed by bitcoin collateral, anchoring the digital credit sleeve with floating-rate yield., Strategy Inc 10% Series A Perpetual Strife PreferredIt pays fixed income backed by bitcoin collateral, functioning as the senior tranche of the digital credit allocation., Strive Inc Variable Rate Series A Perpetual PreferredIt provides daily-paid variable income backed by bitcoin collateral from a second issuer, diversifying the credit risk., Strategy Inc 10% Series A Perpetual Stride PreferredIt pays above-market fixed income backed by bitcoin collateral, serving as the junior and highest-yielding tranche of the digital credit sleeve.32%
- International and emerging market stocks balance the take so growth isn't entirely dependent on US large caps. · Vanguard FTSE Developed Markets ETFIt adds developed international markets so the equity portion isn't entirely dependent on US stocks., Vanguard FTSE Emerging Markets ETFIt rounds out global equity exposure by adding emerging market stocks to balance the concentration in large US companies.15%
- A convertible preferred that provides current income while maintaining upside participation if bitcoin treasuries continue to grow. · Strategy Inc 8% Series A Perpetual Strike PreferredIt pays income while converting into company stock if the issuer performs well, giving the fixed income sleeve some upside participation.8%
- Cash5%