Bank of America declares ‘the end of the 60-40’ standard portfolio

Chris Matthews
Bank of America declares ‘the end of the 60-40’ standard portfolio

Investors have long been told that the ideal portfolio should carry 60% of its holdings in equities and 40% in bonds, a mix that provides greater exposure to historically superior stock returns, while also granting the diversification benefits and lower risk of fixed-income investments. “The relationship between asset classes has changed so much that many investors now buy equities not for future growth but for current income, and buy bonds to participate in price rallies,” Harris and Woodard wrote.