By Rob Brown, PhD, CFA, Julex Capital Advisory Board Member
The 60/40 portfolio has been a staple for good motive—it has labored properly over the long term. A big a part of the efficacy of the 60/40 portfolio comes from bonds that offset fairness losses in extended bear markets. Normally, rates of interest decline throughout bear markets, which explains a majority of the rise in bond costs relative to different necessary issues like present yield or supervisor choice. However with rates of interest already so low, some are questioning if bonds can nonetheless carry out their position inside a portfolio or if different options may very well be simpler.
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