Vanguard Says Flip the 60/40 Portfolio for 2026: Bonds Back, AI Risks Rising
Vanguard is signaling a shift from the traditional 60/40 portfolio, recommending a 40% stocks, 60% bonds mix for the next decade. The firm’s latest model projects U.S. equity returns of 3.5% to 5.5% annually through 2035. Higher bond yields and lofty stock valuations underpin the move. Vanguard stresses the guidance is long-term and not a short-term market call.