60/40 is a financial term Wealth Managers use referring to a portfolio mix, or percentage of equities (stocks) versus your fixed income (bonds) investments. The mix of 60/40 has been a standard (and popular) allocation that seeks to diversify investment risk across stocks (growth) and bonds (income).
The 60/40 blend can be modified based on the investor’s stage of life, retirement/income needs and risk tolerance. More recently, the classic 60/40 portfolio blend is being re-thought due to higher equity valuations and the low interest rate environment versus what has recently been a period of increased inflation rates.
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