"Reviving the 60-40 Portfolio: 7 Top Investments for a Volatile Stock Market"
Originally Published 2 years ago — by MarketWatch
The 60-40 portfolio, which allocates 60% to stocks and 40% to bonds, is expected to make a comeback in 2024 as the yield on the 10-year Treasury note hovers around 4%. With the Federal Reserve projecting three interest-rate cuts next year and waning inflation, bonds are seen as a compelling investment to hedge against stock market volatility. The traditional 60-40 mix of stocks and bonds has faced criticism in recent years due to lackluster bond performance, but analysts believe the relationship between stocks and bonds will normalize as inflation slows. However, investors should act quickly as the window of opportunity may close if the Fed cuts interest rates.
