Should Investors Turn to the 60/40 Portfolio for Safety Today?
Is the 60/40 portfolio living up to its reputation of resilience this year?
Why it matters: The merit of a classic portfolio of 60% stocks and 40% bonds has been a matter of debate in recent years. A diversified 60/40 strategy failed to protect investors in 2022’s broad market crash—in fact, an all-stock portfolio would have held up better. However, a historical deep dive from Morningstar concluded that the tried-and-true approach lessened the pain in almost all of the worst market crashes in 150 years better than an all-stock portfolio. Morningstar Inc Portfolio Strategist Amy Arnott discusses the 60/40 portfolio’s ups and downs and its performance in 2025.
10 Questions on the 60/40 Portfolio
- What is a 60/40 portfolio, and why is it…
