For the traditional 60/40 portfolio, 2022 was a punishing year. But the model’s long-term record has been stellar and, at current valuations, expected returns for the next decade have improved.
Lukas Brandl-Cheng, investment strategy analyst, Vanguard, Europe, looks at how the long-term outlook for global bonds has turned more positive because of—not in spite of—the recent sell-off in fixed income markets.