Why Vanguard says investors should flip the traditional 60/40 portfolio in favor of bonds

TIMOTHY A. CLARY / AFP

• Vanguard suggests a 60% bond, 40% stock portfolio, flipping the traditional allocation.
• High AI-driven stock valuations prompt Vanguard's bond-focused strategy.
• The firm's Kevin Khang said a gradual shift is better than a sudden flip of the stock/bond allocation.

If you're looking to put some money to work in markets right now, Vanguard says it's a good idea to lean into bonds.

In fact, the asset management giant says the ideal...