A balanced investment approach combining 60 percent stocks and 40 percent bonds has delivered returns matching those of all-stock portfolios over most of US history, according to analysis of trailing 30-year returns. The finding suggests investors may not need to hold predominantly stocks to achieve competitive results.
The comparison has implications for how individuals approach personal investing. The result challenges the assumption that generating strong returns requires concentrating holdings heavily in equities, instead suggesting that a more balanced allocation between stocks and bonds can be equally effective over long periods.