Vanguard Says Flip the 60/40 Portfolio for 2026: Bonds Back, AI Risks Rising
December 25, 2025 — The classic 60/40 portfolio (60% stocks, 40% bonds) has long been the shorthand for “balanced” investing. But heading into 2026, one of the world’s most influential asset managers is pushing a noticeably different message: the next decade may reward a more bond-heavy mix—not because growth is collapsing, but because markets are pricing in a lot of good news, especially in U.S. mega-cap tech and AI. The timing is striking. With the S&P 500 closing at a record high on Christmas Eve and investors looking ahead to 2026, the debate over whether AI enthusiasm is “the new