Australian investors have long relied on bonds and equities to build balanced portfolios, aiming to reduce risk and maximise returns. The relationship between how these asset classes move together – known as stock-bond correlation – plays a crucial role in shaping investment strategies.

In recent years, this correlation has shifted, prompting fresh questions about diversification and risk management in the local market. However, this reassessment doesn’t mean the 60/40 portfolio is in peril.

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