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Bank of America: 60/40 Portfolio Fails Amid Inflation, Stagflation Fears

Bank of America: 60/40 Portfolio Fails Amid Inflation, Stagflation Fears

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CNBC TV18•12-03-2026, 13:45

Bank of America: 60/40 Portfolio Fails Amid Inflation, Stagflation Fears

•Bank of America warns clients that the traditional 60/40 portfolio is underperforming in 2026.
•Inflationary and stagflationary worries, exacerbated by the Iran war, cause stocks and bonds to move in tandem.
•Strategist Jared Woodard notes 60/40 models incur losses when accounting for inflation, citing undiversified indexes.
•Bank recommends diversifying with income-generating emerging markets ETFs, international small-cap value stocks, and small/midcap industrials.
•Harbor Commodity All Weather Strategy ETF (HGER) is highlighted for outperforming 60/40 with low correlations.

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Representational image (Image: News18)

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