Don’t Lose Faith in the 60/40 Portfolio
Inflation holds the key, but over time, the approach still looks sound.
Lauren Solberg
Lauren Solberg is a data journalist for Morningstar. She covers market trends, inflation, and other macroeconomic news.
Before joining Morningstar in 2020, Solberg designed educational content for Trala, a Techstars company, and led tours at the Chicago Architecture Biennial. She holds a bachelor's degree in economics and Spanish from the University of Illinois at Urbana-Champaign.
Follow Solberg on Twitter @lauren_solberg.
Latest
How to Find Stocks Poised to Outperform
Wide moats plus low valuations have been a winning combination.
With the December CPI Report, Is the Fed’s Inflation Target Coming Into Range?
Fed seen halting rate increases at the March meeting.
Market Brief: Will the December CPI Report Help Further Tame Inflation Fears?
Jobs data reassures investors; declining natural gas prices hits energy stocks.
December Jobs Report Offers Good News: Easing Wage Pressures, Healthy Economy
Fed seen able to further slow rate increases in February.
15 Charts Explaining an Extreme Year for Investors
We look back at a brutal year in stocks, bonds, and crypto.
5 Charts on Value Stocks’ Big Comeback
Having been out of favor for more than a decade, value stocks have caught back up with growth.
Too Early to Celebrate, but the November CPI Report Gives the Fed Breathing Room
Goods prices slide into deflation, but services show continued upward pressure.
Small-Cap Stocks Are Really Cheap
Valuations on small caps are at their lowest in decades, and a recession looks priced in.
Why the November Jobs Report Is Raising Inflation Concerns, Again
Strong wage growth, payrolls may not bode well for the fight against inflation.
Markets Brief: Has the Stock Market Hit Bottom? 3 Signs to Watch
In a down week for the market, Taylor Swift hits Live Nation stock, FTX ripples swamp Coinbase.
Why These Biotech Stocks Are Outperforming the Market
Recession-resistant stocks include undervalued names like Moderna and CRISPR.
Are These Stocks the New Market Leaders?
Cash-generating stocks including healthcare and financials, rather than Big Tech, could be the favorites when the bear market ends.
Finally, the CPI Report Has Some Good News on Inflation
Fed still seen continuing to raise rates, but at a slower pace and stopping sooner.
Are Bonds a Better Bet Than Stocks Right Now?
Morningstar Investment Management’s Marta Norton lays out the changing calculus for investing across the markets.
Markets Brief: Why October CPI Report Forecasts Have Fed Policy Hanging in the Balance
Software stocks slump as investors wrestle with Fed outlook.
Strong October Job Report Sets the Stage for Continued Fed Rate Increases
Moderate wage growth a good sign for inflation, but CPI reports will determine the Fed’s path.
Big China Stock Bets Continue to Hit Emerging-Markets Funds
‘Autocracy risk’ takes its toll on China’s stock market, down more than 50% since February 2021.
Markets Brief: What to Watch in the October Jobs Report, Fed Meeting
After mixed big technology earnings, focus turns to healthcare and energy Q3 results.
Big News for Investors: TINA is Dead
Thanks to rising bond yields, the era of `There Is No Alternative’ besides stocks for income is finally over.
Will the 60/40 Portfolio Start to Work Again?
The jury is out on whether rising bond yields could turn the tides back in favor of the popular diversification strategy.
CPI Report Suggests the Fed May Step Up Rate Hikes, Again
Despite hot inflation for September, the case for cooling in 2023 remains strong.
Jobs Report Shows the Economy Is Still Chugging Along
A gradual softening of the labor market and slowing wage growth provides room for inflation to cool off.
7 Charts on Value Versus Growth Stocks in the Third Quarter
Growth stocks were down in the quarter yet still managed to outperform value stocks.
Q3 2022 Market Performance in Charts
Bonds again offer no safe harbor as stocks make a round trip in the bear market.
Never Mind Growth vs. Value Stocks, Look to Beta
Why investors should be focusing on stock volatility instead of style.
CPI Report Defies Hopes of Easing Inflation, for Now
While inflation should slow in 2023, the Fed is seen as staying on an aggressive path in the coming months.
Why There Is Good News for Investors in the Jobs Report
Rise in labor force participation and slowdown in wage growth bodes well for inflation and the economy.
7 Undervalued Small- and Mid-Cap Quality Stocks
Easily overlooked stocks like Bath & Body Works and Paramount have strong fundamentals and room to run.
These Wide-Moat Stocks Are Gaining Ground
Quality stocks including Microsoft and Amazon have outperformed since the market low in June, but they're still undervalued.
7 Undervalued Quality Growth Stocks
Growth stocks including MercadoLibre and Salesforce are available at a steep discount and look poised for long-term outperformance.
The 10 Most Undervalued Real Estate Investment Trusts
Dividend-paying REITs have been knocked back by recession fears, but stocks including Simon Property Group, Welltower are looking cheap.
CPI Report Shows Good News on Inflation, but Fed Rate Hikes Remain in the Cards
Easing supply chain pressures, falling energy prices should put continued downward pressure on inflation.
Yes, It's a Strong Jobs Report, but July Probably Overstates the Case
Surge in hiring confirms the economy isn’t in recession, but the Fed will be focused on inflation
Tech and Consumer Stocks Are Back Leading the Market. What Does It Mean?
Inflation and the Fed could determine how long this change in stock market leadership lasts.
Why Your 60/40 Balanced Portfolio Isn't Working in 2022
For the last two decades, bonds and stocks usually haven't moved in the same direction. That's not the case this year.
Did the June CPI Report Mark Peak Inflation?
While inflation hit a 41-year high in June, falling food and energy costs should ease the pain in July.
In a Tough Quarter, Sustainable Strategies Struggled But Stayed Competitive
Healthcare stocks help offset the impact of tech stock declines and energy stock strength.
Jobs Data Shows a Strong Economy Amid Recession Fears
Wages provide reassuring news on inflation, but Fed still on track for more tightening.
14 Charts on the Market’s Second-Quarter Performance
For just the second time in 40 years, bonds and stocks both posted losses for two consecutive quarters.
How Much Worse Can It Get for Growth Stocks?
In the second quarter, value outperformed by the widest margin since the dot.com bubble collapse as growth stocks suffered their worst losses since 2008.
These 5 Semiconductor Suppliers Are Undervalued
Shares of microchip-parts suppliers, including Teradyne and ASML, are available at steep discounts, and the companies are poised for long-term profits.
Which Dividend Investing Strategies Are Outperforming?
High income plus high quality has made for a down-market cushion with these exchange-traded funds.
Hot Inflation May Mean an Even More Aggressive Fed
Factors driving high food and energy costs should ease, but timing remains uncertain.
8 Undervalued Electric Vehicle Stocks
Don’t bother with Tesla—BorgWarner, Sensata, and other companies throughout the EV supply chain are trading at discounts and looking good for the planet.
6 High-Quality, Undervalued Semiconductor Stocks
Taiwan Semiconductor, Nvidia, and other chipmakers have been hit by supply-chain woes, but their stocks are at their cheapest in many years.
Job and Wage Growth Moderating, and That's Good News
It looks like the economy is shifting to a steadier, healthier pace of growth.
4 Undervalued High-Dividend Stocks
Even as investors chase income, these high-quality dividend payers look attractive.
Food and Ag Stocks Are Having Their Time in the Sun
Mosaic and ADM are among those with solid gains in 2022, but valuations are rich.
Lessons From 2022’s Tech Stock Collapse
It may not feel good, but it’s actually a healthy selloff.