Nobody knows for sure if the 60/40 portfolio is dead. But any extended period of inflation probably would kill it, as it has in the past.
Bonds, which are fixed-dollar obligations, are almost guaranteed losers if they have maturities of any significant length in an inflationary period. Even if they wind up eking out victory over inflation, it won’t likely be by the margin anticipated before the spike.
Read the full article on Advisor Perspectives.
