FYI: Peaking stock returns amidst low bond yields is a toxic mix for long-term investors
Not long ago, I expressed my belief that the so-called 60/40 portfolio (60% in stocks and 40% in bonds), the bedrock of so many investors and investment advisors, was gradually fading in usefulness. That article from October 3 focused on recent trends in the 60/40 concept, which I think is oversimplified and over-prescribed for investors, especially those approaching retirement or retired already.
As the next step in alerting you to the other side of the 60/40 mantra, let’s take a very long-term view. When we do, we find a precarious position for stocks AND bonds (specifically, U.S. Treasury Bonds) which combine to make the next 10 years or so in 60/40 portfolios some very disappointing ones.
Regards,
Ted
https://www.forbes.com/sites/robisbitts2/2018/11/12/more-bad-news-for-6040-portfolios/?ss=etfs-mutualfunds#2575b7ef17e4
