The boilerplate “60/40” portfolio so far this calendar year has had its worst stretch in a century. The ache will subside at some point.
Such portfolios are comprised 60% of shares and 40% of preset-earnings and dollars. It’s a supposedly fewer-unstable product frequently used by men and women who are considering or approaching retirement. They really don’t have a extended-adequate investment decision time horizon to recoup prospective losses in the risky stock industry. Considering that they need access to their money pretty soon, they stabilize the worth of their portfolio by owning the safer bond market place, which also pays fascination. Keeping some cash provides ballast, also.
