The Myth of “Balanced” Investing For years, the financial industry pushed a simple formula: 60% stocks, 40% bonds. It was marketed as prudent, diversified, even conservative. Retirement accounts were built on it. Pension funds depended on it. Advisors repeated it like gospel. The logic seemed airtight—stocks generate growth, bonds provide stability. When one falls, the other cushions the blow. But that logic was built on a very specific economic backdrop: falling interest rates, controlled inflation, and a steadily strengthening financial system. In other words, a world that no longer exists. Inflation Changes Everything Here’s the uncomfortable truth investors are now being forced to confront: inflation breaks the 60/40 model. When inflation rises, both stocks and bonds can fall at the…
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