Don’t Give up on the Classic 60/40 Portfolio in 2026, Strategist Says
Is the 60/40 portfolio back? If you ask Gargi Pal Chaudhuri, BlackRock’s chief investment and portfolio strategist for its Americas division, the answer is yes — at least for now.
For decades, an allocation of 60% stocks and 40% bonds has been a cornerstone of portfolio construction.
Your stock allocation would handle the growth, while the bond allocation would play defense by locking in a steady return and promising the chance to sell for a profit if the stock market went through a rough patch.
But in 2022, the strategy didn’t work. Inflation soared, causing the Federal Reserve to hike rates, torpedoing stocks. At the same time, long-term bond yields rose to match inflation expectations, crushing the value…
