Published by Yahoo! Finance
Written by Dani Romero
“The recent synchronized selloff in stocks and bonds has crushed one of the most popular strategies for long-term investors: the 60/40 portfolio.”
“According to data from strategists at Bank of America Global Research published last week, the 60/40 portfolio — a mix of 60% stocks and 40% bonds — was down 19.4% year-to-date through the end of August, on track for its worst year since 1936.
“Through the end of August, the S&P 500 was down over 16% year-to-date, while long-term Treasuries were down over 20% and investment grade corporate credit was down 13%.
“Stocks struggled to kick off September on a positive note last week, with all three major averages sliding ahead of the long weekend. The August jobs report released on Friday did not deter investor fears of continued aggressive interest rate hikes from the Federal Reserve later this month.
“And after rallying from mid-June lows through mid-August highs, the S&P 500 has erased about half of its ~17% gain over this period, a sign to the team at BofA this was just a “typical bear market rally.” Including last week’s losses, the S&P 500 is off some 17.6% so far this year.
“The 17% rally off the June lows appears to have been just a typical bear market rally, which occurred 1.5 times on average per bear market,” BofA wrote. “Our bull market signposts continue to show no real signs of a bottom.”
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
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