Investing Insights Elevate Your 60/40 Portfolio With These Simple Tweaks
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Feb 20, 2026 Jason Kephart, senior principal at Morningstar who researches multi-asset strategy, outlines a “total portfolio” refresh for the classic 60/40. He breaks holdings into growth and stability roles. He discusses which assets suit each sleeve, why some credit behaves like equities, and simple rebalancing examples to keep portfolios disciplined.
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Behavior Over Labels
- The total portfolio approach groups holdings by how they behave, not just by asset class.
- It emphasizes outcomes like growth and stability over simple stock-vs-bond labels.
Clear Growth vs Stability Roles
- Growth sleeve holds assets that perform well in good economic environments.
- Stability sleeve holds assets that protect the portfolio when things go poorly.
Keep Risky Credit Out Of Stability
- Avoid treating all fixed-income as equally stable when building a portfolio.
- Don't load the stability sleeve with assets like high-yield that worsen drawdowns.