MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

The New 60/40 (Portfolio)

MarkMark
in Fund Discussions
By Plutos at Seeking Alpha

Summary
° A 60/40 mix between stocks and bonds has historically been a rule of thumb for investors wishing to mute some of the volatility of equities.

° With lower forward expected returns on equities and fixed income, will the 60/40 portfolio return continue to deliver for investors?

° This article compares the 60/40 heuristic versus low volatility equities, which also offer lowered equity volatility akin to a bond allocation.

° I also examine the performance of an 80/20 strategy that features low volatility equities in lieu of a more traditional stock allocation.

° Results of the different strategies are compared over the nearly three decades of data available for my chosen low volatility equity index.

Portfolio Strategy

Comments

  • catch22catch22
    edited January 2020
    Hi @Mark Thanks for the link and I'll read all when my chores are finished.
    Aside from having a dedicated, active managed balanced "fund"; I suspect many here have their risk adjusted "balanced portfolio", a "build your own".
    This applies to this house.
    At some point, we'll likely have a hands off balanced fund, as with FBALX or similar.

    Sidenote: Balanced funds, which have had great support on the bond side for several decades remain happy today (Jan. 21).
Sign In or Register to comment.