Investors since 1980 have had a great run, until recently, with the 60/40 stocks and bonds investment portfolio strategy, but that strategy has turned into a disaster this year for the first time since the 1970’s. There are big reasons to believe that this is not just a one off year for the strategy, but that systemic issues will make it a loser strategy for the years to come. We are now in a bond and stocks bear market at the same time this year. Morgan Stanley put out a post titled Rethinking The 60/40 Portfolio giving an overview of the problems and a few alternatives to the strategy you can find here.
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