Part 2/10:
The 60/40 rule gained popularity because it seemed to offer a straightforward way to diversify while pursuing reasonable returns. Historically, stocks have delivered high growth, while bonds stabilized portfolios, especially during turbulent economic times. Many individuals and institutions relied on this method within various accounts, including retirement funds, mutual funds, and 529 college savings plans.
The Changing Landscape in 2023 and Beyond
However, as recent headlines and expert opinions demonstrate, the traditional 60/40 approach is increasingly being questioned. A Google search of 2023 news articles revealed that many sources still uphold the principle, emphasizing its longstanding effectiveness. Yet, by 2025, many financial leaders began voicing concerns.