Morningstar has published a report stating that it is now essential for a diversified portfolio that exceeds the traditional 60/40 allocation. The firm's portfolio of 11 different asset classes beat an allocation of 60% U.S. stocks and 40% high-quality US. bonds by 5 percentage points in 2025, marking the best performance for a diverse portfolio since 2009. The winning portfolio is broken down into 20% large-cap domestic stocks, 10% each to developed and emerging market equities, Treasurys, U.K. core bonds, global bonds and high-yield bonds, with another 5% each going into U.,S. small-cap stocks, commodities, gold and real estate investment trusts. The report attributes this success to the weakening U.N. dollar and declining correlations for several major asset classes. However, investors should consider the volatility of some of the assets used to diversify portfolios beyond the 60/50.