Vulnerability of 60-40

An investment portfolio weighted with 60% equities and 40% fixed income has historically been considered "diversified". Yet, this outdated model leaves investors vulnerable. Investment team member, Jay Skaalen, CFA, CFP outlines a better solution - true diversification.

Please note on slide #5 (around 3 minutes and 30 seconds), the chart shows the worst performance years for a traditional 60/40 portfolio. The three worst years performance years have been 2008, 2002 and 2022-to-date. In order to fit the various years on the chart, only certain years are labeled. As such, “2002” is not shown on the chart next to its performance.

The opinions expressed herein are strictly those of Osborne Partners Capital Management, LLC (“OPCM”) as of the date of the material and is subject to change. None of the data presented herein constitutes a recommendation or solicitation to invest in any particular investment strategy and should not be relied upon in making an investment decision. There is no guarantee that the investment strategies presented herein will work under all market conditions and investors should evaluate their ability to invest for the long-term. Each investor should select asset classes for investment based on his/her own goals, time horizon and risk tolerance. The information contained in this report is for informational purposes only and should not be deemed investment advice. Although information has been obtained from and is based upon sources OPCM believes to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. Past performance is not indicative of future results. Inherent in any investment is the possibility of loss.

The Vulnerability of a Traditional 60/40 Investment Portfolio