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2022 Stock-Bond Correlation Is Different

Published on
May 30, 2022
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What has led to the breakdown in stock-bond correlations in 2022? Inflation? A changed macroeconomic environment? Will the 60-40 portfolio ever work again? Or should it be recalibrated back to reflect the covariances of a different decade.

Questions such as these are at the forefront of portfolio design today. The classic long equity volatility and bond duration portfolio is not working, and is causing a conundrum for asset allocators.

Read the latest views from strategists and view their capital market assumptions inside RFPnetworks.

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