Rewatch the webinar: The classic 60/40 strategy has been hitting home runs - but will it continue?

PA Working Lunches

Sophie King
clock • 1 min read

Orbis Investments investment counsellor Rob Perrone is of the opinion the classic 60/40 investment strategy has hit its final 'home run'.

Speaking at a series of working lunches hosted by Professional Adviser, Perrone went into detail about the well-known and widely-used 60/40 investment strategy, which dictates that 60% of the portfolio is invested in stocks and 40% in bonds.  Perrone said that, although the 60/40 strategy had performed very well over the last 30 years, looking at the combination of stocks and bonds today, the valuation is much lower. "The 60/40 [approach] has matched world stocks returns and has been able to do so with less painful drawdowns and volatility," he said. "We know equity valuations are exp...

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