Rethinking Portfolio Allocations
WisdomTree and Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School, are encouraging investors to consider alternatives to the traditional "60% stock, 40% bond allocation" in this recent CNBC interview:
We believe that the old 60/40 model just won’t be able to cut it anymore. This environment of low interest rates is not going to change. The dividend yield on the S&P 500 is higher than the U.S. 10-year Treasury’s 1.5% yield. How is (that) ... going to give you enough income? That’s why we recommend 75/25 as