It’s evident that most investment advisers are not really certain how many stocks and bonds go into what can be considered a “balanced” investment portfolio. Certainly, an indexed, unmanaged mutual fund or an indexed ETF, will provide sufficient diversification.
But what about market risk?
What had been a simple assumption prior to the 2008-2009 financial meltdown is now subject to lots of conjecture. That’s due to the fact both stocks and bonds fell in unison at that time. And they are reacting differently during the current recovery. ( See the Earl J. Weinreb NewsHole® comments.
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