MS Pro Briefing | 17th July 2025
AI’s prediction illusion, Beyond 60/40, Factor Portfolios, and more..
MS Pro has a simple aim: to make your job easier. Our team combs through hundreds of academic and institutional reports every week. With MS Pro, we seek to simplify this into clear, concise, and actionable insights.
Actionable Insights
AI often gives the illusion of prediction by leaning on what it already knows. The real value won’t come from models that remember, but from those that can reason through new situations and spot patterns that haven’t happened yet.
The classic 60/40 portfolio isn’t as reliable as it once was, especially with stocks and bonds often moving together during times of stress. With inflation, rising debt, and global uncertainty, it may be time to rethink diversification and consider adding liquid alternatives that respond differently.
The way factors are combined can influence results. Some strategies integrate multiple factors within a single portfolio, while others separate them. Each approach has its own strengths and can highlight different types of opportunities.
The next 10 years probably won’t be about just one market leading the way. As U.S. stock returns slow down, international and emerging markets are starting to look more appealing. They offer a mix of solid growth potential, reasonable prices, and reliable dividend payouts, making them a smart place to look for balance and opportunity.