Are 60/40 portfolios set for a comeback?

However, questions are being asked of this traditional investment approach following a dismal 2022 where global equity markets recorded sharp declines. This acute decline followed a post-global financial crisis era of low inflation, low interest rates and quantitative easing. 2022 saw the reversal of these factors. 'Year of the bond' will be bumpier than expected High inflation and higher interest rates took centre stage instead, and a key impact of this is that it tends to coincide with a higher correlation between equities and fixed income. One explanation for this is that whe...