Rewatch the webinar: The classic 60/40 strategy has been hitting home runs - but will it continue?

PA Working Lunches

Sophie King
clock • 1 min read

Orbis Investments investment counsellor Rob Perrone is of the opinion the classic 60/40 investment strategy has hit its final 'home run'.

Speaking at a series of working lunches hosted by Professional Adviser, Perrone went into detail about the well-known and widely-used 60/40 investment strategy, which dictates that 60% of the portfolio is invested in stocks and 40% in bonds.  Perrone said that, although the 60/40 strategy had performed very well over the last 30 years, looking at the combination of stocks and bonds today, the valuation is much lower. "The 60/40 [approach] has matched world stocks returns and has been able to do so with less painful drawdowns and volatility," he said. "We know equity valuations are exp...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why are so many active fund managers underperforming?

Why are so many active fund managers underperforming?

US tech stocks have dominated market performance for a long time

Laith Khalaf
clock 29 January 2025 • 5 min read
Diversification: The case for looking further afield in 2025

Diversification: The case for looking further afield in 2025

'The best gains of all could come from casting the investment net far and wide'

Sheldon MacDonald
clock 28 January 2025 • 4 min read
RGL adds further 1,500 Woodford investors to lawsuit against Hargreaves Lansdown

RGL adds further 1,500 Woodford investors to lawsuit against Hargreaves Lansdown

Total of approximately 6,600 claimants

Cristian Angeloni
clock 27 January 2025 • 2 min read