Beyond 60/40: Personalizing portfolios in an evolving landscape

In the last episode of Season 1 of the Better Vantage podcast, Jumana Saleheen, Ph.D., Vanguard’s chief European economist, explores the lasting significance of the classic 60/40 portfolio. She explains that while “60/40 is timeless and time-tested,” the conversation among investors and advisors is shifting toward greater personalization and adaptability in asset allocation. Although the traditional 60% equities and 40% bonds split serves as a shorthand for balanced investing, the real focus should be on tailoring asset allocation to each investor’s goals and risk tolerance.

Drawing­­­­­­­­­­­­­­­­­­ on recent market challenges, Jumana reviews the setbacks of 2022—when both stocks and bonds declined—and clarifies how the strategy has rebounded since then. Highlighting the importance of strong frameworks and systematic judgment, she says, “If you want to do it, you’ve got to do it right. Find the right provider who has that high-quality, evidence-based underpinned methodologies.” The episode also sheds light on the need for adaptability, risk management, and ongoing portfolio monitoring as market conditions and personal circumstances evolve.