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SCIENCE OF WEALTH

Is this time different for the 60/40 portfolio?

We should actually anchor our expectations on the longer-term historical evidence

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    • Many articles proclaim the demise of the 60/40 portfolio because of the aenemic returns in 2021-2022. But since the end of 2022, the 60/40 portfolio is up 40 per cent.
    • Many articles proclaim the demise of the 60/40 portfolio because of the aenemic returns in 2021-2022. But since the end of 2022, the 60/40 portfolio is up 40 per cent. PHOTO: PIXABAY

    Samuel Rhee

    Published Mon, Oct 6, 2025 · 06:07 PM

    THE 60/40 portfolio (60 per cent global equities, 40 per cent global bonds) has delivered 8 per cent in annual returns over the past decade.

    The average return in the past five years was 7.4 per cent. The 10-year, 15-year and 35-year periods gravitate towards the 7 per cent mark, sometimes rising to 8 per cent or falling closer to 6 per cent.

    In the past 35 years, the 60/40 portfolio is up 833 per cent. Those are some pretty impressive numbers and seem to go against most people’s expectations.

    The Science of WealthInvestment portfolios

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