Battered 60/40 Strategy Followers Face More Pain as Yields Rise

After already registering the worst monthly losses in almost a year so far in September, little relief appears in sight for investors adhering to the 60/40 stock-bond portfolio strategy.

The traditional U.S. asset mix of 60% stocks and 40% fixed-income securities was down about 97 basis points in September as of Friday, according to Bloomberg calculations. That’s the biggest monthly loss since October and yields are moving higher again Monday, while equity prices are mixed. The S&P 500 Index is down about 1.5% in September.