By some measures, the 60-40 portfolio is experiencing one of the worst years in recent memory. “For the time being, fixed income makes a lot of sense,” said Rick Rieder, BlackRock’s chief investment officer of global fixed income.
As bonds and stocks have sold off in unison, some people have even questioned whether one of the core tenets of modern portfolio theory still makes sense for investors looking to diversify away their risk exposure.
His recommendation comes as Treasury yields are trading at or near their highest levels in more than a decade. The 2-year Treasury note yield TMUBMUSD02Y, 4.510% logged its highest end-of-day level in 15 years on Thursday on what was an extremely volatile day for markets.
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