![#58 - The 60/40’s Annus Horribilis](https://leuthold.imgix.net/leutholdgroup.com/7ef9b4ef-533c-4285-86a9-5d9c77751842/58-thumb.png?fit=fillmax&w=222&bg=FFFFFF)
The balanced portfolio strategy of allocating 60% to equities and 40% to fixed income generated a highly satisfactory 7.9% annualized return over the last 30 years. Despite the excellent returns earned by investors following this strategic model, the past couple of years have seen a parade of articles with headlines such as “Is the 60/40 Portfolio Obsolete?” and “Is the 60/40 Dead?” Given the central importance of this moderate allocation strategy to investment industry practices, we felt a closer look at the 60/40 portfolio was in order.