Interesting article in the WSJ about how both bonds and stocks have benefited from declining interests rates over the past thirty years. (WSJ) This has lead a lot of advisors to use a 60/40 (stocks/bonds) mix. If interest rates were to back up for a sustained period, both bonds and stocks would suffer at the same time.
These are more dangerous times than many investors realize. Far from holding a (60/40) portfolio which is protected in all environments, they are basically betting on a steady boom with rising prosperity and no inflation—a best-case, and rare, scenario.