Does a 40% Bond Allocation Make Sense in Today’s Portfolios?
September 8, 2020 by Kurt Fillmore
That asset allocation — with approximately 60% of an investor’s money in stocks and 40% in bonds — has been the traditional model for decades. It’s based on the conventional wisdom that the “safer” bond allocation will offset the risk of investing in equities, allowing investors to maintain a reasonably healthy balance in their portfolio whether the stock market is flourishing or floundering. Bonds have long been viewed as a good alternative for moderate and conservative investors who like the stability and income potential they offer.
Originally Posted at Kiplinger on September 7, 2020 by Kurt Fillmore.
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