In 2025, a diversified investment portfolio outperformed the traditional 60% US stocks and 40% US bonds strategy, returning 18% compared to 13%, highlighting the benefits of global diversification amidst market volatility. However, historically, the 60/40 portfolio has outperformed more diversified strategies over the long term, suggesting that while diversification has its merits, the 60/40 approach remains a solid benchmark.
To enhance your portfolio's resilience against volatility and capitalize on potential international market gains, consider incorporating more global diversification rather than relying heavily on a traditional 60/40 US-centric allocation. Despite the past success of the 60/40 strategy, recent trends and the possibility of a weaker dollar suggest strong prospects for international stocks, while gold should be kept as a minor component due to its volatility.