By Plutos at Seeking AlphaSummary
° A 60/40 mix between stocks and bonds has historically been a rule of thumb for investors wishing to mute some of the volatility of equities.
° With lower forward expected returns on equities and fixed income, will the 60/40 portfolio return continue to deliver for investors?
° This article compares the 60/40 heuristic versus low volatility equities, which also offer lowered equity volatility akin to a bond allocation.
° I also examine the performance of an 80/20 strategy that features low volatility equities in lieu of a more traditional stock allocation.
° Results of the different strategies are compared over the nearly three decades of data available for my chosen low volatility equity index.Portfolio Strategy