Performance – COVID-19 Reopening vs. Lockdown Portfolio and U.S. 30-Year Treasury Yield BofA expects 30-year U.S. Treasury yields to rise and the “reopening portfolio” to fall. Image: BofA Global Investment Strategy
60/40 Portfolio Real Returns A period of stagflation does not bode well for 60/40 portfolios. Image: Goldman Sachs Global Investment Research
Median 12-Month Return of Sector-Neutral Dividend Portfolios vs. S&P 500 in Different Inflation Buckets In periods of high inflation, dividend stocks tend to outperform the S&P 500. Image: Goldman Sachs Global Investment Research
10-Year Rolling Real Return for a 60/40 Portfolio Lost decades for 60/40 portfolios have been more common than investors might think. Image: Goldman Sachs Global Investment Research
Real Total Return Performance of U.S. 60/40 Portfolio When will the next lost decade occur for a U.S. 60/40 portfolio? Image: Goldman Sachs Global Investment Research
Returns for Portfolio of 25% in Global Equities, Bonds, Commodities, Cash A diversified portfolio of 25% in global equities, bonds, commodities and cash is annualizing a 16% return, well above the historical average. Image: BofA Global Investment Strategy
Coronavirus – COVID-19 “Lockdown Portfolio” vs. COVID-19 “Reopening Portfolio” A perfect V-shaped recovery for the reopening portfolio vs. lockdown portfolio. Image: BofA Global Investment Strategy
Recessions – Fed Funds Rate vs. Rolling 12-Month Drawdown on Multi-Asset Portfolio of FICC and Equities Could the Fed cause the next recession by raising interest rates too soon? Image: J.P. Morgan
U.S. 60/40 Portfolio Real Returns and U.S. CPI Inflation Above 3% and Rising 60/40 portfolios tend to suffer when inflation is above 3% and rising. Image: Goldman Sachs Global Investment Research
Performance – All Weather Portfolio (Stocks, Bonds, Cash and Gold) The All Weather Portfolio of 25/25/25/25 in stocks, bonds, cash and gold is up 14% YTD, well above its historical annual average of 6%. Image: BofA Global Investment Strategy