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!

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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.