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A 60/40 portfolio has always depended on a clear division of labour. Equities supply long-term growth while bonds generate income and soften the impact during market declines.

That long-held formula became much harder to trust in 2022, when surging inflation and rapidly rising interest rates pushed both asset classes sharply lower.

Theresa Shutt, chief investment officer at Harbourfront Wealth Management Inc. in Toronto, takes a different view.

“The traditional 60/40 portfolio allocation is less effective these days,” she says.

Read more: PDF article

Read the article on the Globe and Mail website: Why balanced portfolios may require a revamp – The Globe and Mail