A 60/40 portfolio is a term you hear a lot. 20 years ago it was the standard template for an investment portfolio. It was made up of 60% stocks and 40% bonds. The allocation of assets in this type of portfolio is designed to provide a balance between growth and stability, with the stocks providing potential for capital appreciation and the bonds providing a source of income and downside protection. This type of portfolio is often considered to be a relatively conservative investment strategy, as the inclusion of bonds helps to reduce the overall volatility of the portfolio. The specific mix of stocks and bonds in a 60/40 portfolio may vary depending on the individual investor’s risk tolerance and investment objectives. Since stocks and bonds have lately moved hand-in-hand, the 60/40 split is today seen as outdated.