40 portfolio may not work in the new regime
An inflation comeback coupled with rising unemployment is an economic rarity last seen in the 1970s, but economists warn it could be back with a vengeance, threatening to upend a failsafe for investors.
The strategy of investing 60 per cent of a portfolio in stocks and 40 per cent in bonds – known as the 60/40 portfolio – has historically ensured good returns in any economic environment because the two asset classes typically move in opposite directions.
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