Bond volatility has busted conservative 60/40 portfolio's safety valve
60/40 portfolios, revered as reliable for decades, fell 17% in 2022, the worst performance since 2008. Find out more.
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60/40 portfolios, revered as reliable for decades, fell 17% in 2022, the worst performance since 2008. Find out more.
Holding 60% of portfolios in stocks and 40% in bonds, revered as reliable for decades, fell 17% last year, the worst performance since 2008.
For it to work, the correlation between the two assets should be negative, and bond volatility should be low. Both theories are being put to the test.
Ksenia Galouchko, Bloomberg News A commuter uses an escalator in the La Defense business district of Paris, France, on Monday, Nov. 9, 2020. France's economy will take a smaller hit from the new lockdown to contain the spread of Covid-19 than it did during the tighter restrictions on activity earlier this year, according to the countryâs central bank. Photographer: Benjamin Girette/Bloomberg , Bloomberg (Bloomberg) -- For so long the laggards of global equity markets, European stocks are back in favor and with the likes of Credit Suisse...