The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel says

[MULTIZ321]

The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel says.

The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel says

The 60/40 ratio of stocks to bonds may not be working for investors anymore, so Wharton finance professor Jeremy Siegel and WisdomTree are putting up a challenge to the traditional model.

www.cnbc.com

.


Richard

 

[Iggyearl]

Got to agree. "Savers" are being crushed by the lack of yield. A stock with a 5% dividend looks pretty good compared to a 2% savings account. My mother-in-law used to run from bank to bank to get the best CD rates. She would be depressed by the current situation.

 

[Talent312]

I agree with the author's sentiment. However, I have a higher level of bonds, becuz as someone who is retired, my interest in stability and preserving capital is higher than the normal investor. I may too conservative, but my time horizon for recovering from corrections is not what it used to be.
.

 

[Brett]

I agree with the author's sentiment. However, I have a higher level of bonds, becuz as someone who is retired, my interest in stability and preserving capital is higher than the normal investor. I may too conservative, but my time horizon for recovering from corrections is not what it used to be.
.

For sure as one gets older the time horizon for recovering from a stock market downturn gets shorter.

 

[geekette]

Just be careful when someone starts talking about high yield investments. In some instances, the underlying assets are very risky, or the super murky funds of funds crap, several layers of fees. Buyer beware.

Understand normal historic yields for that type of investment. Understand why it might be currently outside of normal bounds and what that represents in terms of risk to your dollars.

Come on over to div investing, get annual raises on your starting yield and juice it further while you can allow dividends to reinvest. Yields are pretty low right now, generally, because the market is good. Utilities are fairly stable and decent yields, but generally very modest div raises.

Recovery from a down market? Only applies if you are planning to sell assets. If you instead own income-producing securities where that income is not reliant on market pricing, it doesn't matter what the market does. There are many companies that have paid an increasing dividend for more than 25 years, they don't just stop paying when a recession hits.

 

[cp73]

Thats a terrible article and way outdated. Who recommends 60/40 nowadays? Has the author looked at all the retirement dated funds available? I think most people now realize that there is no allocation that is good for all age groups. It would be terrible for anyone under 45 to consider such an allocation. I just dont buy his premise that a lot of people are doing 60/40 as the norm.