Alec Cutler: Is it the end of the road for 60/40?

clock • 5 min read

Alec Cutler takes a look at the traditional 60/40 portfolio and says its days are numbered...

To paraphrase Dickens, 2020 was - for markets - the best of times and the worst of times. It was the best of times for passive investors in the classic portfolio of 60% global stocks and 40% global government bonds— the "60/40". As central banks around the world fired up their printing presses in March, bond yields fell, and those falling bond yields benefitted passive 60/40 investors in three big ways. First, falling yields pushed global government bonds to a strong 6% return in GBP, despite starting the year with an average yield of just 1%. Second, falling yields helped bonds to...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read