The 60/40 portfolio allocation keeps burning investors, so why do they still use it?


The stock-market rollercoaster ride is enough to get any investor a little nervous. Yet, so far swings in the Dow Jones Industrial Average’s DJIA, -0.43% and S&P 500 SPX, -0.63% are still only a tremor on any longer-term view. Stock prices are higher than they were even one year ago. Nonetheless for many investors it’s an overdue reminder that stock prices can fall — and fall a long way — as well as rise.

That makes it a good moment, say experts, to take stock of your portfolio. Are you taking on more risk than you want? Worse, are you taking on more than you realize? You may well be.

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