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What is a 60/40 portfolio?

This makes it easy for the average investor to get started with a hands-off approach. The 60/40 portfolio invests 60% in stocks and 40% in bonds. This approach provides investors with the growth potential of stocks with the added stability and income of bonds. Therefore, investors can achieve reasonable returns while keeping risk under control.

Is 60/40 a good investment strategy?

Still, the 60/40 portfolio is a strong strategy overall. For the right investor, it can provide the desired results while taking a hands-off approach to investing. Bob Haegele is a contributing writer for Bankrate.

Should you invest in a 60/40 portfolio?

Simplicity: The 60/40 portfolio is a simple strategy that is easy for most investors to implement. Historical performance: The 60/40 portfolio has historically had solid returns and helped limit risk. May sacrifice returns: A 60/40 portfolio will typically outperform an all-equity portfolio while the stock market is down.

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