• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Bautis Financial

Bautis Financial

Secure your Castle, Achieve your Dreams.

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

The 60/40 Portfolio, Explained

October 3, 2022 by Bautis Financial

The 60/40 portfolio is a commonly used benchmark for a balanced investment strategy. But it has recently come under fire as being "broken." Here's what you should know about this portfolio type.


While you may have seen the term “60/40 portfolio,” do you actually know what it is?

In 1952, “Modern Portfolio Theory” was introduced by economist Harry Markowitz as a way to optimize risk-adjusted returns with diversification. The theory moved portfolio construction towards a holistic analysis of how an asset fits into a portfolio and investor‘s overall goal. One way to diversify a portfolio and reduce risk is to invest in a combination of stocks and bonds.

Then, along came Jack Bogle. The Vanguard founder popularized index funds and diversifying portfolios with 60% in stocks and 40% in bonds. Overtime, 60/40 became a benchmark for what a balanced portfolio looks like.

Do you need help diversifying your portfolio? Schedule a complimentary consultation with our advisors.

Schedule an Introductory Call
Category: VideosTag: 60/40 Portfolio, Diverse Portfolio, Diversification
Previous Post: « Stock Market Recap Market Recap Week of 9/26/2022 Through 9/30/2022
Next Post: U.S. Job Openings Sharply Declined in August U.S. Job Openings Sharply Declined in August »

Subscribe to Our Insights

Sign up to receive valuable financial insight and updates straight to your inbox each week.

Social

Follow along on social media

Contact

Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
Get directions
862-205-5800
Contact

Navigation

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Copyright © 2023 · Bautis Financial · All Rights Reserved · Powered by Mai Theme

Return to top