Stock, Bond Market’s Worst Start in Decade Revives 60/40 Doubt

Bloomberg2022-01-06

Combined losses swell to almost 5% in 2022 amid Fed angstIt’s yet another test for the popular allocation strategyA joint drop in equities and bonds is hitting exchange-traded fund investors with the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

sh99
2022-01-06
sh99
lol
- sh99:
  if
BullishKing
2022-01-06
BullishKing
Ok. Like pls.
冲冲高
2022-01-06
冲冲高
K
PBL77
2022-01-06
PBL77
Ok
TIGGER EK
2022-01-06
TIGGER EK
Get cash ready to pick under value stocks....

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1127972984?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-01-06 10:09","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1127972984","market":"us","top_or_hot":-1,"title":"Stock, Bond Market’s Worst Start in Decade Revives 60/40 Doubt","media":"Bloomberg","content":"<div>\n<p>Combined losses swell to almost 5% in 2022 amid Fed angstIt’s yet another test for the popular allocation strategyA joint drop in equities and bonds is hitting exchange-traded fund investors with the ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2022-01-05/stock-bond-market-s-worst-start-in-decade-revives-60-40-doubt?srnd=markets-vp\">Source Link</a>\n\n</div>\n","source":"lsy1584095487587","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stock, Bond Market’s Worst Start in Decade Revives 60/40 Doubt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStock, Bond Market’s Worst Start in Decade Revives 60/40 Doubt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-06 10:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2022-01-05/stock-bond-market-s-worst-start-in-decade-revives-60-40-doubt?srnd=markets-vp><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Combined losses swell to almost 5% in 2022 amid Fed angstIt’s yet another test for the popular allocation strategyA joint drop in equities and bonds is hitting exchange-traded fund investors with the ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2022-01-05/stock-bond-market-s-worst-start-in-decade-revives-60-40-doubt?srnd=markets-vp\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RPAR","symbol_name":"RPAR Risk Parity ETF","start_time":0,"source_url":"https://www.bloomberg.com/news/articles/2022-01-05/stock-bond-market-s-worst-start-in-decade-revives-60-40-doubt?srnd=markets-vp","article_id":"1127972984","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1127972984","pubTimestamp":1641434996,"sourceInfo":{"source_id":"lsy1584095487587","name":"Bloomberg"},"weMediaInfo":null,"summary":"Combined losses swell to almost 5% in 2022 amid Fed angstIt’s yet another test for the popular alloc","collect":0,"end_time":0,"defaultTopTitle":"bloomberg.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"RPAR":"RPAR Risk Parity ETF",".DJI":"道琼斯",".IXIC":"NASDAQ Composite","SPY":"标普500ETF",".SPX":"S&P 500 Index","TLT":"20+年以上美国国债ETF-iShares"},"translate_title":"股市、债市十年来最差开局重燃60/40疑云","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9,"RPAR":0.9,"SPY":0.9,"TLT":0.9},"content_text":"Combined losses swell to almost 5% in 2022 amid Fed angstIt’s yet another test for the popular allocation strategyA joint drop in equities and bonds is hitting exchange-traded fund investors with the worst start of a year in a decade.Investors who subscribe to the moderate-risk portfolio strategy of 60% stocks and 40% bonds have been walloped this week. Treasury yields spiked higher on concerns the Fed will raise interest rates and reduce its bond holdings, increasing the cost of capital throughout the economy. The specter of interest rate hikes also fueled a rout in highly valued tech stocks, whose future earnings become less valuable when rates increase.The iShares 20+ Year Treasury Bond ETF (TLT) fell in each of the first three sessions, driving its 2022 losses to 3.6%. Meanwhile, the SPDR S&P 500 ETF Trust (SPY) erased its year-to-date gains Wednesday.Combined, their 2022 losses reached almost 5%, marking the worst start to a year since TLT was created in July 2002.This is what happens “when the bartender responsible for providing all that liquidity turns to a doctor dispensing tough medicine,” said Max Gokhman, chief investment officer at AlphaTrAI. “It’ll be harder to make broad sector and asset-class bets in this kind of market.”The dire performances are bad news for the popular 60/40 stock-bond portfolio strategy. But they are a vindication to those who warned that the diversification benefit of holding both assets is diminishing in an economy that’s facing mounting inflationary pressures. During the last two decades, subdued growth boosted the allure of the strategy, one that’s built on a negative stock/bond correlation, where one served as buffer for the other.Now, with the Fed poised to hike interest rates to combat raging inflation, the bond-stock relationship could be upended. At stake are trillions of dollars that are managed at risk parity funds, balanced mutual funds, and pension funds that follow the framework of 60/40 asset allocation.The RPAR Risk Parity ETF (RPAR), for instance, dropped 2.7% over three days for the worst stretch since the pandemic bottom in March 2020.Diversification fans note that the death of 60/40 has been pronounced before, only to be proved wrong or at least premature. A Bloomberg model tracking a portfolio of 60% stocks and 40% fixed-income securities has climbed all but one year since the 2008 global financial crisis. It was down 0.1% this year before Wednesday.In the eyes of bulls, rate hikes are an acknowledgment of a strengthening economy that’s the backbone of corporate profits. While this year’s sudden spike in Treasury yields may have forced some unwinding in some speculative corners of the equity market, Wall Streetstrategistsexpect the S&P 500 to continue marching higher this year, driven by robust earnings.“There are few places to seek cover on days like these but fortunately, we expect bond yields to drift higher but at a more gradual pace,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors. “Higher yields will naturally pose a challenge to longer-duration equities like technology stocks, so sector positioning will be important going forward.”","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":695698713,"gmtCreate":1641436545592,"gmtModify":1676532535725,"author":{"id":"3582013951378523","authorId":"3582013951378523","name":"sh99","avatar":"https://static.tigerbbs.com/95985dfcd15851145b63b9903fdb5bfc","vip":1,"hat":"https://static.tigerbbs.com/6444b4970948c1077534c593eccd6d16","crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3582013951378523","idStr":"3582013951378523"},"htmlText":"lol","listText":"lol","text":"lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/695698713","repostId":1127972984,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7158267,"gmtCreate":1641436553501,"gmtModify":1663239410043,"authorId":3582013951378523,"author":{"id":3582013951378523,"idStr":"3582013951378523","authorId":3582013951378523,"name":"sh99","avatar":"https://static.tigerbbs.com/95985dfcd15851145b63b9903fdb5bfc","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":695698713,"type":1,"supId":0,"prevId":0,"content":"if","text":"if","html":"if"}],"langContent":"CN"},{"id":9008656027,"gmtCreate":1641436102998,"gmtModify":1676533615363,"author":{"id":"3580988274582448","authorId":"3580988274582448","name":"BullishKing","avatar":"https://community-static.tradeup.com/news/8e57a03283c997f83948f8c331be008d","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3580988274582448","idStr":"3580988274582448"},"htmlText":"Ok. Like pls.","listText":"Ok. Like pls.","text":"Ok. Like pls.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008656027","repostId":1127972984,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9008651656,"gmtCreate":1641435830780,"gmtModify":1676533615329,"author":{"id":"3577967326862109","authorId":"3577967326862109","name":"冲冲高","avatar":"https://static.tigerbbs.com/b1bdedaa222e1b8ec019d660176bc827","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":8,"crmLevelSwitch":0,"authorIdStr":"3577967326862109","idStr":"3577967326862109"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008651656","repostId":1127972984,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9008653815,"gmtCreate":1641435585900,"gmtModify":1676533615305,"author":{"id":"4087190594214920","authorId":"4087190594214920","name":"PBL77","avatar":"https://static.tigerbbs.com/8ef4f93ba3e261ac276aef28c4467365","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"4087190594214920","idStr":"4087190594214920"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008653815","repostId":1127972984,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9008659443,"gmtCreate":1641435500657,"gmtModify":1676533615290,"author":{"id":"4098683483538500","authorId":"4098683483538500","name":"TIGGER EK","avatar":"https://community-static.tradeup.com/news/ee5e7321ceaae8b9731623758be31712","vip":1,"crmLevel":6,"crmLevelSwitch":1,"authorIdStr":"4098683483538500","idStr":"4098683483538500"},"htmlText":"Get cash ready to pick under value stocks....","listText":"Get cash ready to pick under value stocks....","text":"Get cash ready to pick under value stocks....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008659443","repostId":1127972984,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":52,"commentSize":5,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1127972984"}