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Market Update

Why Your Portfolio Might Need More Stocks

With bond yields near zero, traditional 60/40 allocations won't work as well as they did in the past.

Bonds have been a beautiful thing over the past couple of decades, compounding returns at a decent clip while faithfully filling their traditional role as buffers in down markets. But now that interest rates are close to all-time lows, their future return prospects are much lower.

In this piece, I’ll explain why investors saving for retirement should consider shifting their asset allocations to lean more heavily on stocks. I’ll also run through some of the pros and cons of doing that, especially when it comes to downside risk.