The 60/40 portfolio doesn't work anymore, according to Bank of America.
If the 60/40 portfolio was on life support last year, this year its demise is now "confirmed," Woodard wrote.
Bonds require 40% of the assets in a 60/40 portfolio but have delivered only 25% of the returns since 1920, he noted.
Weak bond returns will lead to "another lost decade" for the 60/40 portfolio, in Woodard's words.
For income, Bank of America's researchers unveiled a strategy called "dynamic prudent yield" that promises to beat bond indexes while carrying less risk.
Persons:
Bonds, Jared Woodard, Woodard, Woodward, Schwab
Organizations:
Bank of America, Bank of, RSP, Vanguard, Energy, P Metals, Mining, Uranium, Research, Government Bond ETF, First Trust, Income, Muni Bond ETF, Muni, Blackstone Senior Loan, of America, Bond, SPDR Bloomberg Convertible Securities ETF, US, iShares, Securities ETF, VanEck Preferred Securities, Financials, Bloomberg, Treasury Bond ETF, Treasury