Your 60-40 Portfolio Is Not Dead

Could rising interest rates spell the end for the 60/40 portfolio? Let's find out! This episode promises an in-depth exploration of the 60/40 portfolio in light of the current financial landscape. Join Tom and me, your hosts, as we dissect the fluctuating state of the portfolio in the face of rising interest rates. We pull apart an article from the Wall Street Journal that questions the viability of the 'set it and forget it' strategy. We also delve into the importance of understanding your stock and bond investments, and how the portfolio can be tailored to suit various investment types.But what happens when bond yields change? We dig deep into this subject, illuminating the potential impacts on your stock portfolio. We delve into the critical role of liquidity and correct portfolio allocation in achieving your target returns, along with an exploration of historical market returns and their impact on stock prices. We also take a critical look at the 60/40 portfolio's future - will it hold up in 2022 and beyond? Tune in for a robust discussion that might just reshape your investment strategies. Be prepared to reassess!