Earlier this week, my colleague Rob Swanke wrote about the relevance of the 60/40 portfolio in light of the current market environment. He asked whether this investment model, which seeks to balance the growth potential of equities with the volatility mitigation potential of fixed income, should be abandoned. Spoiler alert! Rob suggests we need to look forward, not backward, when making portfolio decisions, even though market conditions have changed. While short-term adjustments may help boost performance, the 60/40 portfolio can still be an attractive choice for the moderately aggressive investor.
