In Search of the 60/40 Stock/Bond Asset Allocation Origin — and Why It Matters

The strategy made sense decades ago, and still makes sense today

Stephen Foerster
13 min readOct 10, 2023

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Here’s what the world’s largest asset manager, BlackRock, had to say recently about the “traditional 60/40 portfolio” which had faced criticism in 2022 for its negative performance: “The foundational 60/40 portfolio, where 60…

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Stephen Foerster

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)