A Classic Investment Strategy Is Under Renewed Pressure
The 60/40 stock and bond portfolio has struggled lately
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The surge in long-term bond yields this month is threatening to upend a classic investment strategy — the 60/40 stock and bond portfolio — just as it makes a comeback from a long stretch of underperformance.
A US gauge of the 60/40 mode returned some 1.6% this year through mid-May, besting the S&P 500 Index’s return in the period, and with lower volatility, according to data compiled by Bloomberg.