The 60/40 debate: Is it still relevant?

The classic portfolio construction of 60% stocks and 40% bonds has been scrutinised since 2022’s market crash, when an all-equities portfolio would have fared better. Despite this, Morningstar’s research has found that the traditional mixed make-up has helped investors over the past 150 years of market crashes. The 60/40 portfolio provides balance and exposure to the two largest asset classes, with equities offering growth opportunities and bonds providing yields and downside protection. The combination remains popular and is a simple approach to achieve diversification. So, why did the 60/40...