The Resilience of the 60/40 Portfolio

The 60/40 portfolio, consisting of 60% stocks and 40% bonds, is still a relevant and important investment strategy despite recent poor performance. Diversification remains crucial in reducing risk and achieving long-term stability. While both stocks and bonds have suffered losses in recent years, abandoning diversification is not the solution. Instead, investors should consider further diversifying their portfolios globally or exploring alternative asset classes. The core principle of asset allocation and diversification still holds true, and despite occasional setbacks, it is a proven approach that can yield positive results over time.