Should You Reduce Your Stock Exposure for Today's Market Valuations: 60/40 vs 40/60

With stock valuations near all-time highs in the U.S., many people are asking whether we should reduce or exposure to stocks. In fact, a recent Vanguard market outlook report concluded that a typical 60/40 retirement portfolio may be too rich, and that a 40/60 portfolio is a better option in this valuation environment.

This video is my take on all of this.

Resources:

Vanguard Report: https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/press-release-vanguard-releases-2025-economic-and-market-outlook-121124.html
Bogleheads Forum Post: https://www.bogleheads.org/forum/viewtopic.php?t=60900

0:00 - Intro
0:45 - Current Shiller PE Ratio
3:07 - 2025 Economic Market Outlook
5:27 - Reverse Equity Glide Path
7:33 - Should we reduce our stock exposure?
15:05 - Big takeaway

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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. I've since sold my websites, bought them back, and started a new website and this YouTube channel.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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