The 60/40 Portfolio Is Having Its Worst Year Ever. What to Buy Instead.

(Barron's) - The heyday of the 60/40 portfolio, an allocation of 60% stocks and 40% bonds, is over. According to Bank of America Securities, the popular investment strategy is having its worst year ever.

“Sustained weakness across bond and equity markets further supports the ‘end of 60/40′ thesis,” BofA analysts said in a report. “Adjusting for inflation, a 60/40 portfolio is on pace to lose 49% this year, which would be the worst annual return on record. The correlation between stocks and bonds turned positive in March and is now the...

By Lauren Foster
May 13, 2022


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