The End of 60/40? Rethinking Portfolio Construction for Resilience
The 60/40 portfolio is not “dead,” but the shortcut thinking behind it is. If your plan still treats bonds as a guaranteed shock absorber, you are accepting a risk profile you did not sign up for. You can rebuild resilience by defining what you need the portfolio to do under stress, redesigning the “40” around inflation, rate volatility, and liquidity needs, and adding return drivers that do not rely on stock beta or long-duration exposure. After reading, you will be able to diagnose where your current 60/40 fails, select a sturdier bond mix, and implement a rebalancing policy that holds up when correlations change. Is The 60/40 Portfolio Dead In 2026, Or Was 2022 Just An Anomaly? “Dead” is a headline. The real issue is that 60/40 became popular during a long stretch when bonds not only paid income, they often rallied when stocks fell. When that relationship flips, the portfolio can still work over time, but it can disappoint exactly when you need it to behave. 2022 mattered because it...