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With stock market risks emerging, is now the time to consider the 60/40 portfolio?

With stock market risks emerging, is now the time to consider the 60/40 portfolio?

Young mixed-race woman looking out of the window with a look of consternation on her face

Image source: Getty Images

The stock market’s performed well recently. But risks are definitely emerging. For a start, geopolitical conflict threatens to slow the global economy. Additionally, there’s the possibility of a white collar job wipeout in the years ahead.

Wondering how to protect your ISA or Self-Invested Personal Pension (SIPP) from an equity market meltdown? The answer could lie in the 60/40 portfolio.

What is the 60/40 portfolio?

This split’s an investment portfolio designed to combine growth potential with stability. It involves putting 60% of your capital in stocks and 40% in bonds to create a ‘balanced’ portfolio.

The idea behind this asset allocation is that it should smooth out…

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