New York CNN —An age-old investing strategy is losing its shine, but investors aren’t ready to cast it aside.
Common wisdom suggests that when investors are fearful, stock prices tend to fall, and bond prices rise as people seek safer investments.
When yields rise, bond prices fall, and Treasuries have been sinking in recent months.
Those are characteristics of the perfect storm that sent the 60-40 portfolio nosediving in 2022.
The 60-40 portfolio shed roughly 17% last year, its worst performance since 2008, according to data from Vanguard.
Persons:
Bonds, Stocks, ”, Amy Arnott, Jerome Powell, Brian Henderson, Henderson, Chris Isidore, Marlon Pando, White Lotus, Alicia Wallace, —
Organizations:
CNN Business, Bell, New York CNN, Federal Reserve, Vanguard, Morningstar, Treasury, BOK Financial, Auto, United Auto Workers, General Motors, Ford, GM, Wednesday, Disney
Locations:
New York, New Jersey, United States