Trusted 60/40 investing strategy is broken, and investors should shift away from ‘safe’ bonds, JPMorgan strategists say

Trusted 60/40 investing strategy is broken, and investors should shift away from ‘safe’ bonds, JPMorgan strategists say

At the end of the quarter, especially after a big market move, investors like to tweak their portfolios to reallocate some of their holdings.

But for investors who out of habit follow the old 60% stocks, 40% bonds rule, JPMorgan strategists have a warning. The strategy that worked for decades, providing an average 10% return, may now only return somewhere around 3.5% a year over the next decade.

Source: CNBC

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