In this investment environment, is the 60/40 portfolio dead?

  • 📰 ladailynews
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 59%

United States News News

United States United States Latest News,United States United States Headlines

In the wake of last year’s challenging investment environment, some market watchers are asking if the 60/40 portfolio is dead.

Articles from Barron’s, Kiplinger, and other financial outlets splashed headlines trumpeting the investment strategy’s demise.Before we declare the 60/40 dead, let’s take a closer look at the subject. A 60/40 portfolio is one that is made up of 60% stocks and 40% bonds. While it can be made up of individual stocks and bonds, in most cases portfolios will use diversified investments such as mutual funds and ETFs to follow this strategy.

One poor year a bad strategy does not make. One year of below average performance does not augur that markets will continue to perform this way. If anything, it may be a better time to use a 60/40 strategy than the last few years. Keep these thoughts in mind when deciding whether the 60/40 may make sense for you despite last year’s performance.If you want to know how much interest a bond fund pays, a good place to start is the SEC yield.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 332. in US

United States United States Latest News, United States United States Headlines