Is the 60/40 portfolio dead?

Investments and personal finance insights from Vanguard Australia

16 June 2021 Hi everyone, In this week's Smart Investing, Senior Investment Strategist, Aidan Geysen, explains why a balanced portfolio of 60 per cent equities and 40 per cent bonds may still be a sound investment strategy even in a low yield environment. Senior Personal Finance Writer, Tony Kaye, also analyses the ATO's latest SMSF asset allocation data to find that many SMSFs, despite record low interest rates, still hold very high allocations to cash. Lastly, we revisit a piece by our Chief Economist (Americas) and Head of Portfolio Construction, Roger Aliaga-Díaz, on cryptocurrencies and why they represent uncompensated portfolio risk. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

Is the 60/40 portfolio dead? By: Aidan Geysen Given the low yield environment, is there still a role for traditional diversifiers (such as bonds) in today's balanced portfolio? Read more

Many SMSFs remain heavily cashed up By: Tony Kaye The medium-term outlook for interest rates suggests average investment returns from cash and term deposits will remain at record lows. Yet, many SMSFs continue to have very high allocations to cash over other asset classes. Read more

Digital currencies and investment portfolios By: Roger Aliaga-Díaz Bitcoin and other cryptocurrencies have attracted the attention of many investors, but they are not a sound substitute for traditional asset classes in diversified portfolios. Vanguard's Roger Aliaga-Díaz explains why. Read more

VANGUARD IN THE NEWS 5 helpful investing tips for beginners Eliza Bavin | Yahoo Finance | 10 June 2021 Many Aussies decided to start investing last year but if you're still toying with the idea, here are helpful tips to get started. Half of Aussies regularly think about their financial future but as much as 70 per cent of us don’t have a financial plan, new data reveals. But, Research by investment firm Vanguard Australia found that millennials and Gen-Z are getting more engaged in their finances and investing. To read more, please visit the Yahoo Finance website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

How often should you check investment returns? By: Tony Kaye It's natural to want to monitor your portfolio value, but how often is too often? Read more

Good financial advice improves more than just returns By: Robin Bowerman Beyond the balance sheet, here are several reasons why anyone looking to build their wealth should seek out a good financial adviser. Read more

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