Key Words: ‘We’re not in Kansas anymore’: Why the 60/40 portfolio might be dead, and what to do now 

by | Oct 25, 2023 | Stock Market

“ “The summer of 2020 was the point when the classic ‘set it and forget it’ stock-and-bond portfolio was as good as it got.” ”

— Spencer Jakab, The Wall Street Journal

Rising interest and inflation rates, geopolitical tensions and years in a pandemic have made for a stressful investing experience, and it’s placed pressure on the traditional 60/40 strategy so many retirement savers use. The 60/40 strategy splits an investment portfolio, where 60% is invested in stocks, and the remaining 40% goes to bonds. Typically, an investor may rely on that asset allocation, and then leave his or her investments alone — the “set it and forget it” approach. That strategy has been contested before, most recently in a Wall Street Journal article.

“For four decades, patient savers able to grit their teeth through bubbles, crashes and geopolitical upheaval won the money game,” wrote Spencer Jakab, editor of the Heard on the Street column and the author of the piece. “But the formula of building a nest egg by rebalancing a standard mix of stocks and bonds isn’t going to work nearly as well as it has.” The “set it and fo …

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