“Long live the 60/40 portfolio?”

An independent (financial adviser’s) view

If you’re a ‘Balanced’ investor, which, at ‘medium risk’ is, in our experience, where most are comfortable, you will more than likely have what we helpfully call a 60/40 Portfolio. It means that, usually, up to 60% of your money will be invested in shares, the other 40%, usually in ‘fixed interest’ securities, such as government or corporate bonds, loans to companies or to Rishi & Co. The latter are, usually again, less volatile or risky than shares, so give the balance to balanced funds. This worked pretty well until September 2022, when the value of those bonds was, not trashed but Trussed. The balance is back now. I’d say the lesson is, not that we should abandon the wisdom of ages, rather make sure we and you hang on in there as it, usually again, is and will be alright in the end.

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