CANFIELD, Ohio –John Stewart, chief investment officer at Farmers Trust Co., said the traditional 60/40 investment strategy posted one of its strongest performances in 2025, underscoring that reports of its demise were premature and that balanced portfolio construction still has a place for many investors.
In the interview, Stewart said the strong performance came after years of commentary suggesting the 60/40 model was no longer effective, noting that periods of peak pessimism often align with market bottoms. He said the broader lesson is not that one allocation fits everyone, but that strategies such as 60/40, 70/30 or 50/50 should be shaped by each investor’s individual goals, risk tolerance and income needs rather than broad market narratives.
Stewart also challenged the idea that age alone should determine how aggressively someone invests. Instead, he said allocation decisions are more closely tied to an investor’s specific financial circumstances, including how much income they need from their portfolio and whether they are investing primarily for themselves or for future generations.
He added that investors, particularly younger ones, are increasingly interested in alternative investment products and private-market opportunities. While those options can offer unique benefits, Stewart cautioned that they can also introduce added complexity and risk, urging investors to do their homework and fully understand what they own before moving into unfamiliar areas of the market.