The End of 60 40 Evidence

The relationship between stocks and bonds that led so many people to seek a portfolio of both is no longer working. The opportunity costs across a full market cycle of owning this portfolio was about 150 basis points a year, 1.5 percentage points of drag from owning those treasury bonds as an insurance policy. They didn't pay out a lot of the time and the only periods where they did function well were this 20 year period from about 2000 until about 2019 or 2020.