In our previous report, we discussed how practitioners typically measure investment risk. We also noted how there are ways to reduce risks in a portfolio, such as ‘diversification,’ which can help ...

Investors need to be cautious of the risks of relying too heavily on historic correlations that are prone to change. The current positive correlation between bonds and equities undermines fixed income ...

Learn how Harry Markowitz's Modern Portfolio Theory transformed investment strategies by focusing on diversified portfolios ...

Understand what portfolio diversification is and why it's a crucial investment strategy. Learn how diversification can help ...

Diversified portfolios outperformed the 60/40 model in 2025, but long-term results show traditional strategies deliver better ...

As global financial markets become increasingly interconnected, accurately modelling correlations between assets is essential. Traditional models often assume static correlations, which fail to ...

Traditional portfolios have faced several challenges in the last few years as risk factors grow in markets. Perhaps the largest and most overlooked risk to the 60/40 portfolio in a changing market ...

Ivanna Hampton: Welcome to Investing Insights. I’m your host, Ivanna Hampton. Investing Insights is helping investors navigate market volatility in a new series. Morningstar strategists and authors ...

The “60/40 portfolio” (60% stocks, 40% bonds) suffered a historically bad run in 2022, prompting many market practitioners to question.is the 60/40 portfolio construct dead? With the stock/bond ...

The 60/40 portfolio — 60% equities, 40% bonds — is the most widely held framework for balancing growth and stability in ...

The classic core bond funds used in many balanced portfolios—typically benchmarked against the Bloomberg U.S. Aggregate Bond Index—focus only on U.S. investment-grade bonds. Many have argued for a ...