After one of the worst annual performances in decades, financial experts anticipate a better year for the traditional 60% stocks, 40% bonds portfolio.
Investors that stuck to the traditional portfolio breakdown of 60% allocated to stocks and 40% allocated to bonds were hit hard this year as both asset classes shed value. The S & P 500 has slumped about 18.6% year to date and remains in a bear market. Technology stocks, which had been high-fliers in previous years, plummeted – the tech-heavy Nasdaq Composite is down more than 32% in the same period.
" Of course, as the Fed continues to hike rates, even at a slower pace, it could lead to more volatility in the first half of 2023. That pain is worth the long-term payoff, however. "We need the Fed to win the inflation war to get back to more normal returns," said Rob Haworth, senior investment strategist, wealth management at U.S. Bank.
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