Key Takeaways
• 2022 has dealt a blow to the 60/40 portfolio. While losses in a 60/40 portfolio are not unusual, losses in stocks and bonds simultaneously are unusual.
• Since 1928, with nearly 100 years of track record, the 60/40 portfolio has never had a negative return in any 10-year period.
• Diversification benefits of a 60/40 portfolio are not dead, even if they are not working right now. Today’s dislocations also offer opportunities for investors going forward.