Investors run for cover as yield shock hits 60/40 bonds, stocks balancing strategy
A brutal spike in long-term bond yields is ripping apart one of Wall Street’s most basic investment strategies; the 60/40 portfolio.
Investors who rely on the idea that bonds cushion equity losses are now watching both assets sink in tandem. The problem hit hard in May, when 30-year Treasury yields shot past 5%, dragging stock prices down with them.
That’s a direct blow to anyone still betting on the old rule that when equities fall, bonds rise. This time, everything’s just falling. The 60/40 model (60% stocks,