Is the 60/40 Portfolio Dead?
Thursday, 29 April 2021
A 60/40 portfolio refers to a traditional mix of accounts with 60 percent invested in U.S. and international stocks, plus 40 percent invested in bonds and cash. This has been the template for a “balanced portfolio” for about fifty years, although the mix of investments has changed a lot over time. Some advisors like to use actively managed strategies to fill out a 60/40 portfolio, while others - like Flourish - focus on less expensive and more predictable index strategies. There are lots of combinations for investors to try, and the 60/40 portfolio has been a very successful investment strategy over the years.
Despite that, some economists are saying this investment approach is on its way out. Is it dying, though, or simply taking a nap? Jay Pluimer takes you through the details in this episode of the Flourish Insights podcast.