I dunno about 60/40, but after getting burned badly with 100% equities in the 1960s, I switched to 100% bonds in the 1970s. That was disastrous. Luckily I was a student and had very little money to spare for the markets, so lost very little (looking back -- it seemed like a lot at the time).speciarderivery wrote: ↑14 Jan 2024 19:32 I wasn't alive for the 70s but wasn't there a significant rise in interest rates as well? How did the 60/40 do through the 70s vs 100% equity?
As a result, I have never held a nominal bond again. (I do hold RRBs, i.e. inflation-indexed bonds).
The 1970s and early 1980s drummed into me the lesson that Prof. Cederburg teaches. Nominal bonds, especially long nominal bonds, bring exposure to significant inflation risk. I would never hold any.
George