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The year that broke the 60/40 portfolio

Jonathan Shapiro

For nearly 40 years, the traditional 60/40 portfolio of stocks and bonds has weathered all market conditions to deliver reliable returns to investors – rewarding those that kept it simple.

But not this year. The 60/40 has had a shocker as stocks are down but bonds – which are meant to provide a buffer in down markets by doing the opposite to stocks – are down even more.

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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/the-year-that-broke-the-60-40-portfolio-20220628-p5axbo