economy

January 27, 2026

Forget the 60/40 portfolio. This investor is 70/30 stocks and cash

Ken Mahoney, CEO of Mahoney Asset Management, said investors should hold onto a "meaningful amount" of cash this year.

Forget the 60/40 portfolio. This investor is 70/30 stocks and cash

TL;DR

  • Ken Mahoney recommends a portfolio allocation of 70/30 or 80/20 stocks to cash.
  • A cash buffer of 20% to 30% is advised to manage geopolitical risks and midterm election volatility.
  • Mahoney views bonds as a 'wasted asset' due to potential negative returns from higher 10-year yields.
  • Midterm election years are historically the most volatile for stocks, with average intra-year declines.
  • Investors should incrementally sell into strength and be prepared to buy on downturns.

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