Thesis Library

60/40 is dead in inflation regimes

Rebalance away from 60/40 — stock-bond correlation flips positive in high inflation regimes

“Yes: when inflation is the constraint, your ‘diversifier’ stops diversifying and starts helping equities dig the hole. Just don’t confuse a regime framework with a permanent obitua…”

Anything but bonds

BofA's Chief Investment Strategist Michael Hartnett, has declared that the first half of the 2020s delivered what he terms “bond-market humiliation,” with long-…

“You brought a drawdown chart to a regime fight. Bonds can be a terrible investment and still be the safe haven—sometimes because growth collapses, sometimes because the state force…”