‘The Better 40’

Is 60/40 well and truly dead? I doubt it. First of all, 60/40's a religion. A religion organized around a correlation assumption that says bonds can cushion an equity portfolio during periods of turbulence. That assumption was undermined in the 2020s, when macro developments drove up inflation, activated monetary policy and undercut bonds. Far from being a stabilizer, bonds were a source of portfolio volatility. But religions aren't so easily dislodged as all that, religious zeal being generall