Amy Arnott, portfolio strategist for Morningstar Inc, discusses why the classic 60/40 investment strategy beat a more diversified portfolio in 2023, and the positive that can come from interest-rate pivots.

The Benefits of Portfolio Diversification

How Does the 60/40 Portfolio Hold Up Against a Portfolio with More Asset Classes?

Why the Well-Diversified Portfolio Struggled in 2023

Is it Worth it to Invest Beyond the 60/40 Portfolio?

Why Interest Rate Pivots Are Painful and Encouraging

Is There an Interest Rate Pivot Right Now?

Do Bonds Still Provide a Diversification Benefit?

Which Bonds are the Best Portfolio Diversifiers?

The Role of Cash in an Investment Portfolio

Key Takeaways

Read about topics from this episode.

How Did Diversified Portfolios Hold Up in 2023?

Why Simpler Has Been Better for Portfolio Diversification

How Rising Interest Rates Change the Relationship Between Stocks and Bonds

Which Bonds Provide the Biggest Diversification Benefit?

Top 10 Things to Know About Building a Diversified Portfolio

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Inherited IRA Investors Get Another Break, but the Clock Is Ticking on RMDs

Short-Term Market Volatility Could Provide Long-Term Investing Opportunities

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Ivanna Hampton

Amy Arnott

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Why More Diversification Doesn’t Mean Better Returns 14:33 Share

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Shownotes Transcript

Why More Diversification Doesn’t Mean Better Returns