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The New 60/40 (Portfolio)

By Plutos at Seeking Alpha

° 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


  • edited January 21
    Hi @Mark Thanks for the link and I'll read all when my chores are finished.
    Aside from having a dedicated, active managed balanced "fund"; I suspect many here have their risk adjusted "balanced portfolio", a "build your own".
    This applies to this house.
    At some point, we'll likely have a hands off balanced fund, as with FBALX or similar.

    Sidenote: Balanced funds, which have had great support on the bond side for several decades remain happy today (Jan. 21).
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