Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, I Van A Hampton.

Is the 60-40 portfolio living up to its reputation of resilience this year?

The merit of a classic portfolio of 60% stocks

and 40% bonds has been a matter of debate in recent years. A diversified 6040 strategy failed

to protect investors in 2022's broad market crash. In fact, an all-stock portfolio would have held up better. However,

a historical deep dive from Morningstar concluded that the tried and true approach lessened the pain

in almost all of the worst market crashes in 150 years better than an all-stock portfolio.

Joining me as Morningstar Inc. portfolio strategist, Amy R.N.

To discuss the 6040 portfolios up and sand downs and its performance in 2025.

Thanks for being here, Amy.

Thanks for having me.

Well, let's start with an explainer.

What is a 60-40 portfolio and why is it so popular?

Well, the 60-40 portfolio is all about balance. So you've got 60% stocks, 40% bonds. It gives you exposure to the two biggest asset

classes. And on the stock side, you have equity exposure, so that is going to give you

the potential for growth and capital appreciation over time. And on the bond side, you have

yield from the bond coupons and also hopefully some downside protection. So with those two things together,

you're getting pretty broad market exposure

and diversification between stocks and bonds.

So it's popular because it's a very simple approach

to building a diversified portfolio and it has also performed

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