Best Investments As 60/40 Portfolio Heads for Dismal Returns: BofA
A classic and widely touted investment strategy looks poised to deliver meager returns for investors in the coming years.
Forecasters at Bank of America said they think the classic 60/40 portfolio — an investment portfolio split between 60% stocks and 40% bonds — was likely headed for a yearslong stretch of weak performance.
The bank predicted the classic portfolio mix would return less than 1% next year after accounting for inflation, and that the portfolio would deliver a real loss of 0.1% over the next 10 years.
That’s partly because large-cap stocks in the US are likely to underperform after three consecutive years of stellar growth, the bank said.
“The math of history is tough: average returns for the…
