The Classic 60/40

The 'Gold Standard' of balanced investing for over 70 years.

What is 60/40?

A 60/40 portfolio allocates **60% to Stocks** (for growth) and **40% to Bonds** (for income and stability). It is designed to capture 80-90% of stock market returns with significantly less volatility.

Why it works

Historically, stocks and bonds have had a low or negative correlation. When stocks crash (like in 2008), investors flock to the safety of bonds, which often rise in price, "cushioning" the blow to your wealth.

Growth Component

Usually US Large Cap stocks (like the S&P 500). This is the engine that generates long-term wealth.

Defense Component

Usually Total Bond Market or Treasury. This provides fixed income and acts as a stabilizer.

Stress Test: 1970s vs 2022

The 60/40 had a rough 2022 because both stocks and bonds crashed simultaneously—an extremely rare event. Using StressTest.pro, you can see if the 60/40 is truly "dead" or if it remains the best starting point for a moderate investor.

Backtest the 60/40 Portfolio

Free Analytical Tool

See how a 60/40 allocation performed during the Great Recession, COVID-19, and the 1970s Stagflation.

Analyze 60/40 Now