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With the Federal Reserve raising interest rates, it’s understandably difficult for investors to be enthusiastic about fixed income assets.

The doubts keep coming, but so does the strategy.

May 10, 2021 With soaring Treasury yields punishing bond returns, the viability of the classic 60/40 equity/fixed income portfolio is stirring considerable debate. That’s not surprising. If aggregate bonds strategies are struggling against the backdrop of rising 10-year yields, it’s reasonable to expect advisors and, for that matter, clients to question the efficacy of a portfolio that devotes 40% of itself to fixed income. Yet data suggests it’s probably too early to author 60/40 obituaries. “Vanguard Balanced Index (VBAIX), a fund with a strategic 60% allocation to the U.S. total ...

It's a weekday. You know what that means. Somewhere, someone is pronouncing the classic balanced portfolio of 60% stocks and 40% bonds dead. Rising interest rates are the predetermined cause of death. Yet, as interest rates surged in the first quarter of 2021 and U.S. Treasuries were routed for their worst quarterly loss, the old-school balanced portfolio's performance was anything but an outlier. Vanguard Balanced Index (VBAIX), a fund with a strategic 60% allocation to the U.S. total stock market (the CRSP U.S. Total Market Index) and a 40% allocation the U.S. total bond market (the Bloombe...