On Nov 13, the Wall Street Journal published
The Classic 60-40 Investment Strategy Falls Apart. ‘There’s No Place to Hide.’
(the article may be behind a firewall)
My 5 takeaways from the article:
- Market losses impact real people. There is a community in this, and you are not alone.
- The article buried the lead: Why isn’t 60/40 working? Inflation. What has worked for the last 40 years will likely be different in the future.
- Individual investors need a system beyond 60/40 that can adapt to varying economic conditions, not just a disinflationary one.
- I disagree with blind commitment from financial advisors to stick with 60/40. We can’t know the future. Will it be inflationary or recessionary? Or both? Or neither?!
- We are resilient. I would be doing exactly what Johnathan Bowden is doing in his situation. I wish everyone featured in the article good fortune, prosperity, and happiness.
Inflation hurts everyone.
And getting it under control must be the Federal Reserve’s highest priority.
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