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Fri, February 7, 2025

Are 60/40 Portfolios Still Relevant Today?


Published on 2025-02-07 09:01:11 - Kiplinger
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  • As a general statement, if you believe in the U.S. economy and government, the 60/40 allocation should work well for most people.

The article from Kiplinger discusses the relevance of the traditional 60/40 portfolio (60% stocks and 40% bonds) in today's financial landscape. It highlights that while this allocation has historically provided a balance between growth and income with reduced risk, recent economic conditions like low interest rates, inflation, and market volatility have challenged its effectiveness. The piece explores alternatives and modifications to the 60/40 model, suggesting that investors might consider diversifying into other asset classes like real estate, commodities, or even cryptocurrencies to hedge against inflation and market fluctuations. It also notes the importance of adjusting asset allocation based on individual risk tolerance, investment horizon, and financial goals, indicating that while the 60/40 portfolio isn't obsolete, it might need reevaluation or customization to remain relevant in modern investment strategies.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/kiplinger-advisor-collective/are-60-40-portfolios-still-relevant-today ]
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