2023 Could Be the Year to Welcome Back the 60/40 Portfolio

Bond yields are the highest they’ve been in 15 years, and stocks appear less expensive than before. The odds are now in favor of the balanced portfolio.

A welcome mat sits at an open front door.
(Image credit: Getty Images)

Last year was bruising for investors across the board. With the S&P 500 down 19%, the Nasdaq lower by 33% and the Bloomberg U.S. Aggregate Bond Index down 13%, there weren’t too many places left to hide in 2022. One of the dominant narratives was the apparent breakdown of the traditional 60/40 portfolio, meaning a composition of 60% stocks and 40% bonds. Investors with this allocation experienced a portfolio decline akin to the great financial crisis of 2008!

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Mel Casey, CFA®, CAIA
Senior Portfolio Manager, FBB Capital Partners

Mel brings nearly two decades of financial services and investing experience to the FBB Capital Partners team. As a Senior Portfolio Manager, Mel is responsible for managing client relationships and client investment portfolios. A native of Dublin, Ireland, Mel received his Bachelor of Commerce degree from University College Dublin. He is a CFA® and CAIA charterholder, a member of the CFA Institute and a member of the CFA Society of Washington, DC. Mel lives in Bethesda, Maryland, with his wife, Jenny, and their two children.