Balanced funds are the workhorses in many investors’ portfolios because they can potentially reduce risk and cut down on the amount of hands-on management an account requires. Balanced funds consist of both fixed income and equity securities, delivering what many would consider a classic approach to portfolio diversification. Balanced funds seek to provide both income and capital appreciation.
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Podcast: Thoughts on the Market
Allocation, pt. 1: Stock & bond correlation shifts
In the current era of tighter Fed policy, the status quo of stock and bond correlation has changed, calling the foundational 60:40 portfolio into question. Chief Cross Asset Strategist Andrew Sheets and Chief Investment Officer for Wealth Management Lisa Shalett discuss.
Allocation, pt. 2: The Value in Diversification
While shifts in stock and bond correlation have increased the volatility of a 60:40 portfolio, investors may still find some balance in diversification.
Is 60:40 diversification broken?
One of the most common standards for investment diversification, the 60:40 portfolio, has faced challenges this year with significant losses and shifting correlations between stocks and bonds. Is this the end of 60:40 allocation?
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