Expert insight
February 10, 2026
In this short excerpt from a recent internal webcast, Joe Davis, our global chief economist, explains that our 40% stocks / 60% bonds time-varying portfolio does not necessarily mean that investors should be making drastic changes to their asset allocation. Instead, it’s a risk/return evaluation that can guide investors on where to invest their next dollar.
Read the transcript
Joe Davis: It's a signaling device to save for one's next dollar. Most investors don't rebalance. So if they were 60/40 five years ago, they're probably 80/20. Great news, by the way, for future retirement income. But let's think about it just in the same way we rebalance. And it's a signaling device to say there's parts of the market that have grown riskier relative to the potential future reward. And that's all that it’s signaling.
Notes:
All investing is subject to risk, including the possible loss of the money you invest.
Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss.
Investments in bonds are subject to interest rate, credit, and inflation risk.