The '60/40' Portfolio Is Having Its Worst Year in a Century. What’s Next. | Barron's

2022-10-16 19:07:04 By : Ms. Maggie King

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https://www.barrons.com/articles/stocks-bonds-60-40-portfolio-51665766248

The boilerplate “60/40” portfolio so far this year has had its worst stretch in a century. The pain will subside at some point. 

Such portfolios are comprised 60% of stocks and 40% of fixed-income and cash. It’s a supposedly less-volatile model often used by people who are contemplating or approaching retirement. They don’t have a long-enough investment time horizon to recoup potential losses in the risky stock market. Since they need access to their money fairly soon, they stabilize the value of their portfolio by owning the safer bond market, which also pays interest. Holding some cash adds ballast, too. 

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The boilerplate “60/40” portfolio so far this year has had its worst stretch in a century.

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