Author: Ahmad Takatkah
A New Standard for Investment Portfolios
True innovation in finance is rare. In 1952, Nobel Prize Laureate Harry Markowitz created one such innovation as a long-term portfolio strategy: the 60/40 portfolio. This concept involves investing 60% of portfolio capital in stocks and 40% in bonds. It offers the potential for high returns from stocks while using bonds to reduce the effect of market volatility and preserve capital. Over time, the 60/40 portfolio has become the standard portfolio structure for all financial advisors.