It’s the foundation behind most financial advice proffered today. It’s the methodology taught in most finance courses. It’s the doctrine that powers most “robo advisors.” Unfortunately, it also may be totally wrong.
A “balanced” portfolio made up of 60% stocks and 40% bonds has long been championed as the safest, most conservative investment allocation for retirement planning. Recent research shows that this “sleep at night” approach may be far riskier than we’ve been told. You owe it to yourself to check this out: https://www.marketwatch.com/story/your-portfolio-may-be-riskier-than-you-think-2018-10-11