Investing
Unloved 60/40 Strategy Needs a Modern Makeover to Win Over Skeptics
After half a century, the venerable investment allocation formula is showing some signs of age. But that doesn’t mean retail investors need to start from scratch.
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The investment portfolio cocktail of 60% equities and 40% bonds has many critics — big financial institutions have lined-up to sneer at the mix for over a decade now.
Investors have been urged to look at more exotic options to generate gains amid questions over the outlook for returns from bonds. Yet over the last 14 years, you would have done better by holding a 60/40 portfolio than following some other hyped-up strategies.