Mutual Funds Weekly: It’s time to ditch your ‘60/40’ portfolio — plus other top investing stories

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Don’t miss these top money and investing features:

Money and investing stories resonating with MarketWatch readers this past week include market warnings from bond guru Bill Gross and influential hedge-fund manager Ray Dalio. These two well-known investing veterans see trouble for investors as politicians and policy makers find options to generate economic growth are increasingly limited. Dalio, for his part, sees not a market crash but a “great sag” — listless, less-hospitable, less-profitable investing conditions.

Plus, understand why a traditional 60/40 stock-bond portfolio allocation might not be your best bet under these market conditions, and read about the seasonally bullish year-end run that U.S. stocks typically enjoy. Then, check out several stories on socially responsible investing, and watch an interview about the market sectors that giant Amazon.com won’t be able to dominate.

— Jonathan Burton

INVESTING NEWS & TRENDS
Prepare for end to double-digit price gains for markets: Bill Gross

Don’t bet on zero to negative bond yields to feed the stock-market’s gains, says bond-market veteran Bill Gross.
Prepare for end to double-digit price gains for markets: Bill Gross

Why the bull market won’t end with a typical crash, says hedge-fund billionaire Ray Dalio

Hedge-fund billionaire Ray Dalio said the world’s economy echoes the 1930s.

Why the bull market won’t end with a typical crash, says hedge fund billionaire Ray Dalio

Bank of America declares ‘the end of the 60/40’ standard portfolio

Bank of America strategists say there are reasons to increasingly doubt the safety of bonds.
Bank of America declares ‘the end of the 60/40’ standard portfolio

How big a year-end stock-market rally to expect this time

Some think the so-called Santa Claus Rally begins in late October, just like those who put up their Christmas decorations before Halloween.
How big a year-end stock-market rally to expect this time

This little-known recession indicator is now sending investors and consumers a warning

Two gauges of U.S. economic health are telling different stories — and that’s troubling, writes Mark Hulbert.
This little-known recession indicator is now sending investors and consumers a warning

This transportation measure is far more upbeat than the Dow Transports

Economists and Dow Theorists have worried about the poor showing of the Dow Jones Transportation Average and what it means for the economy.
This transportation measure is far more upbeat than the Dow Transports

The first-ever ESG junk-bond ETF debuts

Does the investing world really need an exchange-traded fund that checks both these boxes?
The first-ever ESG junk-bond ETF debuts

More large-scale investors are skittish about an ESG strategy at the expense of returns: survey

Some institutional investors remain increasingly unconvinced that responsible investing will boost their returns.
More large-scale investors are skittish about an ESG strategy at the expense of returns: survey

For ESG investors, the newest challenge is separating fact from ‘greenwashing’

When companies boast about their environmental bona fides, is it just marketing buzzwords?
For ESG investors, the newest challenge is separating fact from ‘greenwashing’

There’s growing demand for green bonds but no international standard to ensure their ‘greenness’

Investing in green bonds and other sustainable assets does not necessarily mean missing out gains from other funds, IMF report finds
There’s growing demand for green bonds but no international standard to ensure their ‘greenness’

Go on, cut your fees, BlackRock tells brokers: more ETF business for us

As online brokers slash their fees, more investors are finding their way to exchange-traded funds, and for more reasons, executives of the ETF market share leader told analysts
Go on, cut your fees, BlackRock tells brokers: more ETF business for us

Hedge funds still can’t keep up with the stock market

Investors pulled money from hedge funds as they continued to underperform in September.
Hedge funds still can’t keep up with the stock market

How to profit from the ‘Amazon Effect’

T. Rowe Price’s David Giroux on which market sectors are immune to disruption.
How to profit from the ‘Amazon Effect’