The traditional investment approach of allocating 60% of a portfolio in stocks and 40% in bonds, with a goal of minimizing portfolio losses, has failed in 2022. According to Bloomberg, the 60/40 mix is down 17% for 2022.

However, some argue that the approach still makes long-term sense. Many believe that bonds will regain their status as a good counterweight to stocks, according to AdvisorHub. Leuthold Group, a market research and money management firm, shared that the decline sets the stage for future average returns of 6.9% on the 60/40 mix for long-term investors, though with more volatility than in the past.

Advisors and investment firms are taking different strategies concerning the 60/40 mix. For example, Vanguard Group is counseling patience with a 60/40 strategy, noting that it is not unusual to see stocks and bonds decline in concert over shorter time frames. Other firms are advocating for a 60/40 mix to incorporate more asset classes, such as alternative assets. 

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