Even after a brutal 2022, Vanguard strategists don't see a reason to ditch the tried-and-true 60/40 portfolio mix. In fact, they think aA portfolio that held 60% stocks and 40% bonds took a loss of about 16% last year, which raised doubts about whether the strategy could remain viable in an age of painful volatility and heightened macro risks. But pushing the timeframe out a full decade, the classic portfolio composition retains its promise of steady returns for investors.
A difficult 2022 brought stock valuations lower and closer to fair value, in Vanguard's view. That makes the classic balance look even more attractive, and even the worst-case risk scenario has improved in 2023. "But that's not to say that 60/40 is any better than a 40/60 or 90/10 portfolio for investors who need a more conservative or more aggressive portfolio for their goals, time horizon, and risk tolerance," Schlanger said, adding that the needs of a young adult differ from those of someone older. "It's a good starting place, but an investor will need to tailor a portfolio to their needs.
Finally, the strategist said it's important not to adopt a"set it and forget it" approach, but instead revisit and reassess periodically.
Australia Australia Latest News, Australia Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Alphabet stock jumps on earnings while Microsoft shares dip, and other stocks on the moveAlphabet, Microsoft, Dish Networks and PacWest Bancorp are among the stocks in the spotlight.
Source: MarketWatch - 🏆 3. / 97 Read more »
Stock market news today: Dow notches its 12th straight winDow notches 12th straight win as US stocks rally ahead of Fed policy decision
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: Cointelegraph - 🏆 562. / 51 Read more »