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

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
Partner Insight: Understanding the investment universe

Partner Insight: Understanding the investment universe

Invesco
clock 12 April 2024 • 6 min read