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The 60/40 stock-bond weight rule needs to go on a crash diet

The 60/40 stock-bond weight rule needs to go on a crash diet

Finance
The classic 60/40 rule — an investor should put 60 percent of their portfolio in stocks and 40 percent in bonds — is popular for a reason: It has a good historical track record of delivering equity-like returns, while lessening the risk of serious annual portfolio drawdowns.Here are a few basic statistics that prove that point.Since 1928 — the first year data were available — a 60/40 portfolio of the S&P 500 and 10-Year Treasurys has delivered an average annual total return of 9 percent, or 78 percent of the total return for just the S&P 500 (11.5 percent). After inflation (using annual CPI) this translates to a 5.9 percent average total return for 60/40, or 70 percent of the average real returns for the S&P 500 (8.4 percent).More from Fixed Income Strategies:Where the bonds ar
China scraps term limit on presidential rule

China scraps term limit on presidential rule

World
China has abolished the limit on how long its leader can serve, meaning President Xi could now rule the country indefinitely.The almost 3,000 hand-picked delegates at the National People's Congress overwhelmingly endorsed the constitutional change, with 2,958 voting in favour.There were two votes against, three abstentions and one ballot was invalidated.The amendment overhauls a system introduced by former leader Deng Xiaoping in 1982, which was introduced with the aim of preventing a repeat of the bloody reign of Mao Zedong.Until now, presidents had been limited to two consecutive terms.Image:The result of the vote is seen on a giant screenAs voting got under way, President Xi led members of the seven-member all-powerful Politurbo Standing Committee in casting their ballots.He put his ora...
Shape of Water and Frances McDormand rule Oscars

Shape of Water and Frances McDormand rule Oscars

Entertainment
Media playback is unsupported on your deviceThe Shape of Water, about a woman who falls in love with a sea creature, has taken the top honours at the Oscars.Frances McDormand won best actress for Three Billboards Outside Ebbing, Missouri, and persuaded every female nominee to stand with her in a night full of statements about inclusion.Britain's Gary Oldman was named best actor for playing Winston Churchill in World War Two epic Darkest Hour.The Shape of Water won the most Oscars with four, including best film.In her acceptance speech, McDormand put her Oscar on the floor in front of her and addressed executives as the female nominees got to their feet. It was one of the most powerful and symbolic moments of the night. "Look around, ladies and gentlemen, because we all have stories to tell...
3 serious problems with the 4% retirement rule

3 serious problems with the 4% retirement rule

Finance
We're all told to save as much money as possible for retirement, but how much is really enough? For years, experts have relied on the 4% rule to help determine how much savings is truly adequate. The rule states that if you begin by withdrawing 4% of your nest egg's value during your first year of retirement, and then adjust subsequent withdrawals for inflation, you'll avoid running out of money for 30 years. Not only is the 4% rule a nice idea in theory, but it's been tested and proven successful time and time again. That said, the 4% rule is far from perfect, so you'll need to be cautious about adopting it. Here are three specific problems to watch out for. 1. It makes assumptions about your investment mix The 4% rule is designed for portfolios with a relatively equal mix of stocks and...
Winter Olympics detente does not rule out North Korea military option

Winter Olympics detente does not rule out North Korea military option

World
NEW YORK, Jan. 26 (UPI) --North Korea's push for reconciliation with the South is being welcomed in the United States.But in the absence of a nuclear shift, U.S. President Donald Trump's administration is not ruling out the possibility of a limited military strike, a former CIA analyst said Friday."They're not kidding about this, this is a policy option that is being considered," said Sue Mi Terry, a senior fellow at the Center for Strategic and International Studies, during a talk delivered at The Korea Society. "All options are truly on the table right now."Terry was referring to a recent Wall Street Journal article that provided details regarding a debate in the Trump administration about whether a "bloody nose" surgical strike could be a viable option that could damage North Korea's we...