The traditional 60/40 investment portfolio has recorded a remarkable year of growth in 2023, sharply rebounding from a disappointing year in 2022. As of Dec. 27, the year-to-date performance of the 60/40 portfolio, benchmarked by the iShares Core Growth Allocation ETF (NYSE:AOR), stands at approximately 13%.

This performance figure ranks as the third-best year for the strategy since its inception in 2008, trailing only behind the strong years of 2009 and 2019.

As we enter the new year, investors are pondering whether the favorable conditions that supported both equities and bonds in the second half of the year will endure.

60/40 Portfolio In 2022-2023: From Downturn to...