60/40 Is Dead: Risk Parity Isn’t That Much Better Anymore Either

60/40 Is Dead: Risk Parity Isn’t That Much Better Anymore Either

The default portfolio choice for investors from the 1970s onward is the 60 stock/40 bond portfolio. Back when bond yields were high and earnings multiples were lower for the S&P 500, this meant you could get returns around 9-10 percent with a level of vol…
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