Is the Traditional 60/40 portfolio broken?

The 60/40 portfolio, a mix of 60% stocks or equities and 40% bonds or other fixed-income offerings, has been popular throughout the past several decades. It was developed in the 1960s and grew in popularity much in part due to more stabilized annual returns than only investing into equities. However after a series of bear markets and extremely low interest rates in the late 2010s and early 2020s, that approach to asset allocation appears to be broken. Why is that and what can you do about it? When you look at the idea behind the 60/40 portfolio, it was […]