The Securities Litigation Expert Blog

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.