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

Advisers notice growing client demand for bespoke investments

Advisers notice growing client demand for bespoke investments

Want access to ETFs, investment trusts, equities, bonds and AIM shares

Isabel Baxter
clock 17 April 2025 • 2 min read
FCA outlines final CCI ruling timeline as it brings out second consultation

FCA outlines final CCI ruling timeline as it brings out second consultation

'Detailed engagement' to continue

Eve Maddock-Jones
clock 16 April 2025 • 3 min read
Talking with… Rathbones Asset Management's James Thomson

Talking with… Rathbones Asset Management's James Thomson

The series continues as Richard Romer-Lee chats to James Thomson

Richard Romer-Lee
clock 14 April 2025 • 4 min read