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60/40 annual returns. This page looks at the total return of a 60/40 portfolio, or a portfolio comprised of 60% equities – represented by the S&P 500 – and 40% bonds – represented by the Bloomberg U.S. Aggregate Total Return Index – rebalanced annually. The chart goes back to 1950, showing over 70 years worth of data. 2022 was clearly a .
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The 60/40 portfolio, defined here as a mix of 60% U.S. equities and 40% U.S. Treasury bonds, saw a rollercoaster ride down 17.5% in 2022 and up 17.2% in 2023.1 Two hundred years of historical analysis suggests there is an 80% probability of positive returns in the two years following a year of negative returns for both stocks and bonds.
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