Having a mixture of stocks and bonds is still the best bet
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Don’t keep your eggs in one basket. Diversify systematically among stocks and bonds, and do it for the long haul.
PHOTO: REUTERS
Jeff Sommer
It isn’t dead. It’s more important than ever. I’m talking about the 60/40 portfolio, which has sometimes been considered the living heart of investing.
Those specific numbers – which refer to 60 per cent stocks and 40 per cent bonds as core investment holdings – aren’t significant. They are merely a convenient starting point for thinking about investing and not an exact, general purpose prescription for everyone. Nor have they ever been.
