Wall of worry
As an investment experience, it has hardly been pleasant for the stylised 60/40 portfolio over the last few months.
But it comes after a decade of more or less uninterrupted returns.
The bonds were (relatively) great to have in the GFC and into the pandemic, the stocks were (relatively) great to have in the exit from the pandemic, and the entry into a higher inflation environment. Having both, and tweaking them over time, was even better.
It harkens back to the old words of investing, “no pain, no premium”, or “no risk, no return”. Unless you need the money tomorrow (unlikely for the vast majority of clients, in which case the willingness and ability to tolerate risk would be commensurate with a differently configured portfolio), just keep calm and carry on.
And eventually, as they have for everything the world has ever thrown at them, risky assets will climb the wall of worry.
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