Will the 60/40 classic portfolio return to form in 2024?

That's the view of Andrew Pease, Russell Investments' global head of investment strategy.

The 2022 year was one of the worst ever for the classic portfolio because both equities and bond prices fell at the same time, with the US 10-year Treasury bond yield rising from 1.5% in early 2022.

The US 10-year bond peaked at just a fraction below 5% in mid-October and has now fallen below 4%.

“The bottom line is government bonds are likely to re-establish their role as effective diversifiers for multi-asset portfolios and, as a result, we expect the 60/40 portfolio is set for a comeback,” Pease said in his firm's 2024 market outlook.