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How to Replace the 60/40 Portfolio (or Not): Advisors' Advice

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The 60/40 stock/bond allocation is dead. That’s what a growing number of market strategists have been saying for at least a couple of years because bond yields are so low — actually negative on an inflation-adjusted basis — that they can’t provide the income many investors seek nor much ballast to offset stock market volatility.

As a result, many strategists have been advocating for bigger allocations to stocks, especially dividend-paying stocks, whose payouts can be greater than that of many bonds, as well as foreign stocks, and to alternatives like real estate and real assets, including commodities. Some even favor more cash because cash is more stable than bonds as interest rates rise.

Given this backdrop, ThinkAdvisor asked a number of advisors how they’re positioning portfolios these days. Check out the slideshow above to see how some advisors are addressing the “60/40 is dead or ailing” scenario. Not all agree, by the way.

(Image: Adobe Stock)