A Fine Balance Leads to Successful Long-Term Investing

Elaine Crook - Feb 04, 2019
The world’s most ordinary investing strategy has just wrapped up an extraordinary decade by thumping the returns produced by the big brains at Yale and Harvard. But can a plain-vanilla 60/40 portfolio keep on delighting investors?

The world’s most ordinary investing strategy has just wrapped up an extraordinary decade by thumping the returns produced by the big brains at Yale and Harvard. But can a plain-vanilla 60/40 portfolio keep on delighting investors as markets get stormy and interest rates begin to rise?

The answer depends on what you want to achieve. If you’re shooting for the maximum possible return, or want to build an impenetrable defence against any possible loss, the 60/40 portfolio isn’t for you.

On the other hand, if you’re a typical investor looking for an intelligent, practical way to balance risk and reward, then this venerable approach demands your attention despite gathering storm clouds.

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