60/40 Portfolio Rebounds in 2023, Countering Claims of Its Demise
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The 6040 portfolio is bouncing back this year after a poor 2022, performing closer to its long-term average return.
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The portfolio's trailing 20-year return is close to its historical average, countering claims it benefited from an extended period of above-average returns.
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The 6040 portfolio kept investors exposed to stocks, one of the better performing assets over the past 3 years despite rising rates.
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The portfolio provides insurance against equity losses if rates fall and stocks underperform.
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Giving up on 6040 now means losing this insurance that was essentially free the past 3 years.