I Rise: Equities Bonds and Asset Allocation

i rise: I do so to counter the growing consensus that the standard asset allocation of 60% equities and 40% bonds is dead, according to Market Watch. Just last week, CNBC anchor Becky Quick added her voice to this chorus, saying that you're never going to make enough money if you have 40% of your money in bonds. I rise, your Honor, in defense of the 60/40 portfolio. Earlier this fall, Bank of America declared the end of the 60/40 portfolio. Consider its performance since 1926, according to calculations I made using data from Morningstar Annualized returns 1926-2018Standard deviation of yearly returns100% S&P 500 with dividends 10.0%19.7%60% S&P 500 / 40% long-term Treasuries8.8%12.5%60% S&P 500 / 40% intermediate-term Treasuries8.5%12.0% In other words, while immunizing investors from nearly 40% of the volatility or risk of an all-equity portfolio SPX, 0.00% the 60/40 portfolio forfeited either 1.2 or 1.5 annualized percentage points depending on whether the 40% bond portfolio was invested in long-term or intermediate-term Treasuries . That's not a bad trade-off, and the 60/40 portfolio far outperforms the all-equity portfolio on a risk-adjusted basis. To be sure, no one is denying that the 60/40 portfolio has a stellar long-term track record. (news.financializer.com). As reported in the news.