The 60/40 portfolio has been suffering all year, but there are opportunities for long-term investors
The classic diversified portfolio of 60% stocks and 40% bonds is having a terrible year.
The 60/40 strategy, known as a balanced portfolio, has been hit by rising bond yields — which means falling fixed income prices, as well as a sinking stock market. The portfolio’s annualized decline of 32% for 2022, as of Oct. 18, is the worst in the past 100 years, according to Bank of America.
Yet, amid that devastation there may be an opportunity for long-term investors.