Seeing the big picture: what art can teach us about modern portfolios

This is pointillism: an art technique that builds complexity and beauty from countless small, distinct elements. Surprisingly, this artistic approach also offers a powerful metaphor for building a resilient investment portfolio in today’s uncertain world. 

Just as a pointillist painting is more than the sum of its dots, a well-constructed portfolio is more than a collection of individual assets. It’s about seeing the big picture—strategically combining diverse investments to create something stronger, more balanced and more enduring.

Moving beyond the ‘60:40’ canvas

For decades, many investors relied on the classic ‘60:40’ portfolio: 60% equities, 40% bonds. It was simple, familiar and—at least for a time—effective. 

But as the world has changed, so too have the challenges facing investors. Markets are more interconnected, risks more varied and opportunities more nuanced.

Much like an artist who moves beyond primary colours to capture the richness of a landscape, today’s portfolio builders are rethinking the basic palette. 

The goal is to create a portfolio that reflects not just risk and return, but also evolving goals, beliefs (such as sustainable investing), and the realities of a shifting economic environment.

The art of total portfolio management

So, how do you move from a simple sketch to a masterpiece? The answer lies in what investment professionals call total portfolio management (TPM). 

Rather than building a portfolio in rigid, sequential steps—independently identifying a strategic asset allocation, tactical asset allocation tilts and manager choices—TPM encourages a holistic, integrated approach.

Think of it as painting with all your colours at once, constantly stepping back to see how each new dot affects the whole. 

In practice, this means considering how different investments interact, how they respond to changing conditions, and how they align with your objectives—whether that’s steady income, long-term growth or managing future liabilities.

Why transparency matters

Even the most talented artist needs a plan. In investing, that plan is your investment framework—a clear, realistic set of guidelines that shape your decisions. 

Transparency is key. It helps you stay grounded when markets get turbulent and ensures that bold ideas are balanced with practical constraints.

For example, you might believe that US equities are expensive right now, but that doesn’t mean you should sell them all at once. 

Instead, a transparent framework helps you weigh short-term trends against long-term goals and make changes thoughtfully rather than reactively.

Embracing subjectivity and the power of scenarios

One of the biggest myths in investing is that there’s a single, objective answer to the question: ‘What’s the best portfolio?’

In practice, asset allocation is as much art as science. It’s shaped by your assumptions, your risk tolerance and your vision of the future.

For example, our economists have developed six scenarios, or ‘paradigms’,  to model possible futures—from ‘productivity rebound’ (high growth, moderate rates) to ‘stagflation’ (low growth, high inflation) and even ‘deflationary slump’. 

Each one paints a different picture for how US and European equities might perform. In a ‘productivity rebound’, US equities could return more than 10% a year, while in a ‘stagflation’ world, returns could be deeply negative. The weighted average across scenarios? Slightly negative for US equities, but positive for European equities [1].

This approach—thinking in scenarios, not certainties—helps investors prepare for a range of outcomes, rather than betting everything on a single forecast.

Broadening the palette: beyond traditional assets

If the old ‘60:40’ mix is like painting with just two colours, today’s portfolios can draw from a much richer palette. Our research suggests that opportunities—within public and private markets—exist across five broad ‘clusters’:

For most investors, there is value in looking to broaden out an investment portfolio across, and within, these clusters.

The pointillist portfolio: embracing complexity, creating resilience

Building a modern portfolio is a bit like creating a pointillist painting. Each investment—each ‘dot’—may seem random. 

But when thoughtfully combined, they create a picture that is greater than the sum of its parts: a portfolio that can weather storms, capture opportunities and reflect your unique goals and beliefs.

The key is to embrace both the art and the science. Use data and research to inform your choices, but don’t be afraid to acknowledge the subjectivity involved. Be transparent about your framework, diversify broadly, and remember that the big picture is always evolving.

In the end, the most resilient portfolios—like many of the most beautiful paintings—balance structure with creativity, discipline with imagination, and detail with vision.

Read our Long-Term Investment Outlook here