Adjusting Your 60/40 Portfolio For A Zero Yield World

  • And with the much lower long-term risk on high yield bonds, investors can thus achieve equity-like returns for less-than-equity like risk by investing in the space.
  • Unfortunately, an investor must either accept more risk in their bonds (and by extension their entire portfolio) or see their real returns plummet.

Source: Adjusting Your 60/40 Portfolio For A Zero Yield World