High prices, low rates, and a tendency for stocks and bonds to move too closely together has pushed many advisors to ditch the 60% stocks and 40% bonds formula for…
Tag: 60/40 Stock/Bond Portfolio
Worried About the Future of the 60-40 Portfolio? We Look at Some Alternatives
The 60-40 portfolio has been a solid long-term performer for investors. It has worked in bull markets. It has also held up well in deflationary shocks. But with expected returns…
Options for Investors Worried About the Future of the 60-40 Portfolio
By Jack Forehand, CFA, CFP® (@practicalquant) — The 60-40 portfolio just finished one of its best decades in history. And that comes on the back end of a period starting in 1980 that…
Grim Diagnosis for the 60/40 Portfolio, Says $5Tn CIOs
The consensus of participants in the CityWire CIO Summit, held in May, was that the 60/40 portfolio may not be dead, but “its condition appears to be critical.” The Summit…
Some Quantitative Alternatives to the 60-40 Portfolio
In a world where inflation is not a threat, a standard 60-40 portfolio does an excellent job of providing growth, while also limiting downside when stocks get choppy. You don’t…
Quantitative Asset Allocation Approaches That Go Beyond Stocks and Bonds
By Jack Forehand, CFA, CFP® (@practicalquant) — Inflation is coming! Or at least that is what everyone seems to think these days. We have had benign inflation in the US for a…
Dan Fuss on Re-Engineering a 60/40 Portfolio
In today’s rising interest rate environment, Loomis Sayles Vice Chairman Dan Fuss says he would tilt the stock-bond mix toward equities. This according to a recent article in Financial Advisor…
What to Do Instead of the 60/40 Stock and Bond Strategy That Doesn’t Work
Although portfolio diversification in the form of a 60/40 stock and bond split has long been considered the standard given that “bonds typically act as a shock absorber to drops…
What Is the Future of the 60/40 Portfolio?
The traditional portfolio balance of stocks and bonds—known as the 60/40 mix—is “at risk of becoming obsolete as some investors predict years of underperformance by both its component parts.” This…
Vanguard: A 60-40 Portfolio is Still the Bomb
Recent shifts in equity and income markets have some saying that the 60-40 portfolio mix has become a “dull artifact of the past,” but Vanguard argues that it’s performance during…