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60/40 Strategy Isn’t Dead: Wells Fargo  

Wells Fargo analyst Douglas Beath said the death of the traditional 60/40 diversified portfolio is “greatly exaggerated.” So reports CNBC.

wells fargoIn fact, Beath noted it could be on its way to double-digit returns after a rough 2022 so far. Wells Fargo suggests that a 60/40 strategy should return 6% annually over the next decade.

“The historical returns of stocks and bonds, combined with more attractive valuations after the recent downturn plus long-term CMA projections, indicate to us that the 60/40 portfolio is alive and well and that it should continue to serve as a solid foundation for long-term investors,” Beath notes.

Some have argued that the 60/40 approach has “reached its expiration date” and are recommending different strategies.

Read the full article from CNBC.

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