Stocks are roaring higher this year, but Vanguard says investors should stick 70% of their money into bonds

Vanguard's Asset Allocation Recommendation: Vanguard suggests a 70/30 bond-to-stock allocation for long-term investors, predicting that bonds will yield better returns (4%-5%) compared to US equities (3.3%-5.3%) over the next decade due to high stock valuations and low equity risk premiums.

Market Conditions and Valuations: The firm highlights that current stock prices are elevated relative to historical averages, indicating potential risks, while higher bond yields make them more attractive as a safer investment option amidst ongoing market fluctuations.