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60-40 portfolio is dead, but it's not the bond market that killed it, says financial planning icon Ric Edelman

CNBC ยท 312 days

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High Materiality8/10

AI Summary

60-40 portfolios questioned; future investing needs more equities. Longevity and healthcare costs drive new financial planning strategies. Edelman advises 70-80% equity investment for retirement. Bond ladder ETFs provide stable income amid increased life expectancy. Healthcare expenses for retirees projected at $315,000 by 2024.

Sentiment Rationale

Greater investment in the stock market suggest chances for S&P 500 growth, as seen historically post-recession when investors flock to equities over safer assets.

Trading Thesis

As demographics shift with longevity trends, sustained changes in investment strategies toward equities could reshape market dynamics over decades.

Market-Moving

  • 60-40 portfolios questioned; future investing needs more equities.
  • Longevity and healthcare costs drive new financial planning strategies.
  • Edelman advises 70-80% equity investment for retirement.

Key Facts

  • 60-40 portfolios questioned; future investing needs more equities.
  • Longevity and healthcare costs drive new financial planning strategies.
  • Edelman advises 70-80% equity investment for retirement.
  • Bond ladder ETFs provide stable income amid increased life expectancy.
  • Healthcare expenses for retirees projected at $315,000 by 2024.

Companies Mentioned

  • LDDR (LDDR)
  • SPY (SPY)
  • VTI (VTI)
  • IVV (IVV)

Economic

The rising stock percentage in long-term portfolios reflects increasing confidence in equities, fundamentally affecting market performance, particularly S&P 500 dynamics.

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