Vanguard’s 2026 outlook suggests that bonds are expected to perform very well over the next decade, while returns from equities are likely to be lower than in the past.
Based on these expectations, Vanguard has adjusted its classic 60/40 portfolio to a 40/60 allocation (40% equities, 60% bonds), arguing that this new mix could deliver similar long-term returns with significantly lower risk and volatility.
I’m curious to hear what people think about this shift.
Link to a Vanguard video:
[Why we’re underweight stocks | 2026 Vanguard Economic and Market Outlook](https://www.youtube.com/watch?v=SdyenaLIXD0)