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Bank Of America Declares ‘The End Of The 60-40’ Standard Portfolio

|About: Bank of America Corporation (BAC), VWELX

Interesting commentary from Bank of America.


" Investors have long been told that the ideal portfolio should carry 60% of its holdings in equities and 40% in bonds, a mix that provides greater exposure to historically superior stock returns, while also granting the diversification benefits and lower risk of fixed-income investments. " - Chris Matthews, Markets reporter for MarketWatch

“The relationship between asset classes has changed so much that many investors now buy equities not for future growth but for current income, and buy bonds to participate in price rallies,” Harris and Woodard wrote.

Interesting, the Vanguard Wellington funds uses dividend paying stock in the 60% Equity portion of the portfolio.

Is Wellington ahead of their time?

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.