Why the 60/40 is Not Dead, Will Never Die, and Why You Can't Kill It

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“The end to 60/40” (Bank of America)
“Is the 60/40 Dead?” (Goldman Sachs Asset Management)
“Why the 60/40 Portfolio Is Dead for Retirement Planning” (U.S. News)
“The 60/40 rule of investing is dead, experts say…” (MSN.com)

Experts say.” Well then.

The 60/40 is not dead, will never die, and you can’t kill it. That won’t stop the financial media and investment firms from staging mock funerals.

The top three reasons 60/40 is supposedly dead:

  1. Inflation

Bloomberg wrote:

Now, with inflation fears raging, the worry is the Federal Reserve will seek to slow down the economy and rising rates will spell trouble for both bonds and stocks. September offered a taste of the pain, with a Bloomberg model tracking a portfolio of 60% stocks and 40% fixed-income securities suffering the worst monthly drop since the pandemic started in early 2020.

A whole month of underperformance? That settles it.