R.I.P. 60-40 PORTFOLIO
Kiplinger's Personal Finance|December 2020
The old standby allocation of 60% stocks and 40% government bonds might not work for buy-and-hold investors anymore.
ANNE KATES SMITH
R.I.P. 60-40 PORTFOLIO

Jared Woodard is head of the Research Investment Committee at BofA Securities.

What is the 60-40 portfolio, and why has it been the go-to model for many investors? In a 60-40 portfolio, 60% of assets are invested in stocks and 40% in bonds—often government bonds. The reason it has been popular over the years is that traditionally, in a bear market, the government bond portion of a portfolio has functioned as insurance by providing income to cushion stock losses. In addition, bonds tend to rise in price as stock prices fall.

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