Scorned 60/40 model finds allies in biggest test since 2016

The 60/40 portfolio saw investors through the cataclysm of the pandemic. The global recovery is now proving an even tougher test.
Photo: Spar Nord/PR
Photo: Spar Nord/PR
By Emily Barrett / BLOOMBERG

The strategy ­ an investing stalwart since it arose from Harry Markowitz’s Modern Portfolio Theory about a half-century ago ­ was already under pressure from the historic decline in bond yields. But the sharp move in the opposite direction is a more immediate threat, as recent market volatility has triggered tandem declines in stocks and bonds.

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