Where Risk Lies in a Balanced Portfolio

The Vanguard Balanced Fund (VBAIX) was down 4.73% in October.
This was the worst monthly return for this 60/40 stock/bond fund since September 2011 when it fell 5.0%.
The data for this fund goes back to 2001 so I looked at the worst monthly losses to get a sense of where this past month ranks. These were the 10 worst monthly performance numbers:

October was the ninth worst monthly return since 2001. You can see the other…