Mark Northway: Why critics might be wrong about deserting 60/40

Multi-billion pound industry

clock • 3 min read

The logic for holding fixed income is increasingly under scrutiny but exiting could do more harm than good, writes Mark Northway

Wherever you look, the bond doomsayers are there. Their message is that the fixed income bull market, fueled by decades of falling rates, simply cannot go on any longer with yields across trillions of dollars of securities at zero, or even negative. Add in the prospect of rising inflation, which erodes the capital returns portion of a bond, and investors in the likes of the classic 60/40 portfolio need to take urgent action, so the narrative goes. It's hard to deny that the question ‘why hold fixed income?' is becoming increasingly valid and that its answer is becoming increasingly ch...

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

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

AIM has helped 4,000 businesses raise £135bn since launch

Eustace Santa Barbara
clock 19 June 2025 • 4 min read
AIM at 30: Why advisers should take a fresh look at the UK's junior market

AIM at 30: Why advisers should take a fresh look at the UK's junior market

'We see AIM as a jewel in the crown with long-term appeal for the right clients'

Oliver Brown
clock 17 June 2025 • 4 min read
Taking the rough with the smooth: How to navigate global market volatility

Taking the rough with the smooth: How to navigate global market volatility

'Like investing, smoothing isn't one-size-fits-all'

James Tothill
clock 13 June 2025 • 4 min read