Skip to content

The 60/40 Strategy Will Make a Comeback, Morgan Stanley Says

  • Investment approach offers high estimated returns after slump
  • Morgan Stanley still considers bonds good diversifiers

The classic 60/40 portfolio, where investments are split 60% in stocks and 40% in bonds, is merely resting and isn’t dead, Morgan Stanley’s chief cross-asset strategist said, after the strategy had its deepest first-half dive since 1988.

The approach offers higher estimated long-term returns in the US and Europe over the next decade than at most points over the last 10 years, Andrew Sheets wrote in a note dated Sunday.