Mmastodon BusinessFinance first seen 1 d ago, last 1 d ago, peak #5
Commenters question whether the 60-40 portfolio still works
Original: not exactly moving forward. Why? the long term risk environment for # money has irrevocably shifted, the 60-40 # investm
A finance argument circulating online contends the classic 60-40 investment strategy — 60% equities, 40% bonds — no longer holds up. The claim is that the long-term risk environment for money has permanently shifted, with higher fixed yields being eroded faster by inflation, so the traditional allocation fails to protect capital value. It adds to ongoing debate among investors about rethinking portfolio strategy in the current inflation and rate environment.
Why now: Inflation and higher interest rates are making investors re-examine the classic 60-40 portfolio allocation.
Evidence
- not exactly moving forward. Why? the long term risk environment for # money has irrevocably shifted, the 60-40 # investment strategy no longer holds true given higher fixed yields are looking at faster rates of inflationary erosion of capital value. # finance > https://www.… · acefujiwara@mstdn.social · 1
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