Show Notes
Episode 30: If a traditional investment portfolio with 60% stocks and 40% bonds has a down year, should you abandon this approach? Plenty of investors were probably asking that question in 2022, when the Russell 3000 Index plunged 19.2% and the Bloomberg US Aggregate Bond Index tumbled 13.0%. (Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes; Bloomberg data from Bloomberg.) Relying on a balanced portfolio for reasonable returns and reduced risk didn't work. But 2022 was the quintessential outlier—a data point that lies outside the mainstream in a particular dataset. History shows that 2022 was the only year from 1979 through 2025 that both US stocks and US bonds posted negative returns. All told, US bonds suffered five down years and US stocks eight in that 47-year period. The rest of the time they delivered gains. The blend of stocks and bonds that's right for you—60/40, 80/20, 30/70, etc.—will depend on your goals and your time horizon, and it might change over time. However, we believe critics of the traditional 60/40 mix are arguably misguided if they think it's no longer relevant, particularly as a tool for mitigating risk. To wit: From 1986 through 2025, the amount of volatility reduction investors gained from adding 40% bonds to their portfolio was stable through time even though the correlation between stocks and bonds varied widely. In Episode 30 of The Informed Investor, Dimensional's Mark Gochnour, Head of Global Client Services, Wes Crill, PhD, Senior Client Solutions Director, and Jake DeKinder, Head of Client Communications, consider the arguments for and against the 60/40 portfolio and explain why popular alternatives may not get investors where they want to go. Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Risks include loss of principal and fluctuating value. Diversification does not eliminate the risk of market loss. LINKS FROM TODAY'S EPISODE: The Informed Investor Feedback Survey https://www.dimensional.com/us-en/informed-investor-survey The Informed Investor, Episode 26, "Will You Be OK If Stocks Stumble?" https://www.youtube.com/watch?v=5E6POt0MQgM&list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90&index=4&pp=iAQB The Informed Investor, Episode 9, "How Do You Protect Against Market Drops?" https://www.youtube.com/watch?v=7A3f2LE1DQg&list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90&index=22&pp=iAQB The Informed Investor on YouTube https://www.youtube.com/playlist?list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90 Dimensional Fund Advisors Shorts on YouTube https://www.youtube.com/@dimensionalfundadvisors/shorts Mark Gochnour on LinkedIn https://www.linkedin.com/in/mark-gochnour-9a23598a/ Wes Crill on LinkedIn https://www.linkedin.com/in/wes-crill-77a49417/ Jake DeKinder on LinkedIn https://www.linkedin.com/in/jake-d-4105b98/ Learn more at https://www.dimensional.com/
More from The Informed Investor
Episode 62: Happy Halloween—or is it? At this moment, some investors are probably chewing their fingernails down to nubs as they try to digest the latest frightening financial headlines. "Are Global Stock Markets Headed for a Crash?" "The American Dream of Owning a Home Is Out of Reach for Many as Mortgage Rates Soar (Again)" "The US Debt Tops a Record-Shattering $40 Trillion. Yes, with a T." Eek!! Those are actual headlines from recent articles in the financial media (and just a small sample). Hundreds more are just waiting to scare the bejabbers out of you. But as an investor, if you're worried about the current state of the stock and bond markets, the economy, or the latest geopolitical hot spots, headlines are the last place to look for reassurance. Many, if not most, are designed to make you afraid. The facts, on the other hand, will often do just the opposite. In Episode 62, a special Halloween episode of The Informed Investor podcast, Dimensional's Mark Gochnour, Head of Global Client Services, Wes Crill, Senior Client Solutions Director, and Jake DeKinder, Head of Client Communications, dress up … and then dress down the headline writers of America to help investors deflate the fear factor. LINKS FROM TODAY'S EPISODE: "Stay Calm: Learn to Embrace Uncertainty in Investing and Life" Order the new book by Dimensional Founder David Booth https://www.amazon.com/gp/product/B0GPDHGH8K/?maas=maas_adg_2F97289929AB0BA26D806A1F81D55D66_afap_abs&ref_=aa_maas&tag=maas&smid=ATVPDKIKX0DER Subscribe to the Stay Calm Investing Newsletter https://www.staycalminvesting.com/newsletter?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor For US audiences: Select videos are available as part of an opportunity for CFP® and Investments & Wealth Institute® professionals to earn continuing education (CE) credits https://www.dimensional.com/financial-professionals/ce-credit-experience-d360?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor The Informed Investor: Feedback Survey https://www.dimensional.com/us-en/informed-investor-survey?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor "The Informed Investor" on YouTube The Informed Investor - YouTube Dimensional Fund Advisors Shorts on YouTube https://www.youtube.com/@dimensionalfundadvisors/shorts Mark Gochnour on LinkedIn https://www.linkedin.com/in/mark-gochnour-9a23598a/ Wes Crill on LinkedIn https://www.linkedin.com/in/wes-crill-77a49417/ Jake DeKinder on LinkedIn https://www.linkedin.com/in/jake-d-4105b98/ Learn more at https://www.dimensional.com/?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor
Episode 61: The allure of index funds, such as broad diversification, low costs, and market-matching returns, may seem undeniable. But recent "reconstitution" in the indexes tracked by such funds tells a different story—one every investor should understand.
Episode 60: Every two years, millions of investors probably ask themselves (and their advisors) whether looming elections demand changes to their investment portfolios. It's an understandable sentiment—and one that demands discussion. But the most important conclusion from these conversations should never change: Since the data doesn't show any strong connection between election results and stock market performance, it's best to vote with your ballot, not your portfolio. No matter how you slice, dice, or take a hatchet to the data, factor in your own political proclivities, or scream about what you think is totally wrong or right about the candidates, market prices have already incorporated all that information (and thousands of other developments, including numerous economic indicators) as investors consider what to do next. This is a well-researched theory of how capital markets work. The implication is that the stock market doesn't really care what you think about this year's midterm elections or the next presidential horse race. Need supporting evidence? Fourteen of 17 presidential terms since 1929, across administrations with both Democratic and Republican chief executives, ended with positive returns for the S&P 500 Index. (S&P data © 2026 S&P Dow Jones Indices LLC, a division of S&P Global.) Investors shouldn't ignore elections, of course. But their portfolios may benefit from standing pat as politics rile and emotions rock and roll. In Episode 60 of The Informed Investor podcast, Dimensional's Mark Gochnour, Head of Global Client Services, Wes Crill, Senior Client Solutions Director, and Jake DeKinder, Head of Client Communications, interrogate common myths about the impact of elections on markets and offer sensible answers as investors head to the polls. LINKS FROM TODAY'S EPISODE: "Stay Calm: Learn to Embrace Uncertainty in Investing and Life" Order the new book by Dimensional Founder David Booth https://www.amazon.com/gp/product/B0GPDHGH8K/?maas=maas_adg_2F97289929AB0BA26D806A1F81D55D66_afap_abs&ref_=aa_maas&tag=maas&smid=ATVPDKIKX0DER Subscribe to the Stay Calm Investing Newsletter https://www.staycalminvesting.com/newsletter?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor The Informed Investor: Feedback Survey https://www.dimensional.com/us-en/informed-investor-survey?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor "The Informed Investor" on YouTube The Informed Investor - YouTube Dimensional Fund Advisors Shorts on YouTube https://www.youtube.com/@dimensionalfundadvisors/shorts Mark Gochnour on LinkedIn https://www.linkedin.com/in/mark-gochnour-9a23598a/ Wes Crill on LinkedIn https://www.linkedin.com/in/wes-crill-77a49417/ Jake DeKinder on LinkedIn https://www.linkedin.com/in/jake-d-4105b98/ Learn more at https://www.dimensional.com/?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor For US audiences: Select videos are available as part of an opportunity for CFP® and Investments & Wealth Institute® professionals to earn continuing education (CE) credits https://www.dimensional.com/financial-professionals/ce-credit-experience-d360?utm_source=youtube&utm_medium=organic&utm_campaign=informed_investor
Episode 59: What happens when you rethink how financial advice is delivered—and how an industry comes together?
Episode 58: Any financial professional who joined the industry a week after Black Monday—when the stock market suffered its biggest single-day loss—knows something about investment discipline.