The classic 60/40 strategy makes sense for investors again
CNBC••business
Key Points:
- The traditional 60/40 portfolio, with 60% stocks and 40% bonds, has lost popularity due to low interest rates and simultaneous declines in both markets in 2022, but is now regaining interest as bond returns improve.
- In 2025, the iShares Core U.S. Aggregate Bond ETF (AGG) returned 7.2%, highlighting the potential for fixed income to contribute positively to portfolios during monetary easing cycles.
- Experts suggest that bonds could play both offensive and defensive roles in 2026, especially amid stock market vulnerabilities related to high valuations and concerns over an AI bubble.
- Some strategists recommend maintaining a balanced bond portfolio with a mix of credit, Treasurys, and
