Traditional mix of stocks and bonds sees second-biggest gain in over 30 years

  • Traditional 60-40 portfolio surges in November
  • Best performance since 2020
  • Second-biggest gain in over 30 years
  • Stocks and bonds both contribute to drawdown
  • Historically large gains lead to further advances

A traditional mix of stocks and bonds, known as the 60-40 portfolio, has experienced a surge in November, marking its best performance since 2020. According to Bespoke Investment Group, the portfolio, consisting of 60% stocks and 40% bonds, has seen a jump of about 7.3% this month. This gain is potentially the second-largest in over 30 years. The drawdown of the portfolio, which has been below its ‘high water mark’ for 23 consecutive months, is attributed to declines in both equity and bond markets. However, historically, large gains have led to further advances for the 60-40 portfolio.

Public Companies: Bespoke Investment Group (null), S&P 500 (null), iShares Core U.S. Aggregate Bond ETF (AGG), Nasdaq Composite (COMP), Dow Jones Industrial Average (DJIA)
Private Companies:
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Factuality Level: 7
Justification: The article provides information about the performance of the 60-40 portfolio in November, citing data from Bespoke Investment Group and FactSet. The information is specific and quantifiable, and there are no obvious digressions or irrelevant details. However, the article does not provide a comprehensive analysis of the factors driving the performance or any potential risks or limitations of the 60-40 portfolio. Therefore, the factuality level is rated at 7.

Noise Level: 3
Justification: The article provides information on the performance of the 60-40 portfolio in November and compares it to previous months. It includes data from Bespoke Investment Group and FactSet. However, the article contains repetitive information and does not provide a thoughtful analysis or actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the performance of the 60-40 portfolio, which consists of stocks and bonds. It mentions the gains in the U.S. stock market and the performance of the iShares Core U.S. Aggregate Bond ETF.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on the financial performance of the 60-40 portfolio and does not mention any extreme events.

Reported publicly: www.marketwatch.com