I was featured awhile ago in an article at the Globe and Mail, "This investor has been overweighting U.S. stocks and bonds" by Larry MacDonald. Larry writes articles featuring the investment style of various investors for their personal portfolios. In it, I mentioned what I call "passive macro" investing.
One of the stronger "rules of thumb" for investing was to have a "60/40 Portfolio": holding 60% equities (stocks), and 40% bonds. This portfolio allocation is aimed at providing good long-term performance with acceptable risk. In this article, I explain why the 60/40 allocation is reasonable - the tilt towards equities should provide higher returns, but the allocation allows for considerable uncertainty in future investment returns.
