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After your lesson on the importance of diversification two weeks ago, you went on to recommend your uncle a 60/40 investment strategy (this means 60%
After your lesson on the importance of diversification two weeks ago, you went on to recommend your uncle a 60/40 investment strategy (this means 60% equity and 40% bonds). After some research, he angrily came back to you, to point out that 60/40 portfolios had a 17 return last year (2022)!
Why would you even think of such a portfolio? How would you respond?
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