By Jeff Weniger, CFA
Here's your 2.03%. Take it or leave it.
That's probably what the Bloomberg Barclays U.S. Aggregate Bond Index would say if it could talk.
We think the classic "60/40" asset allocation-60% equities, 40% bonds-has a problem.
Aggregate bonds returned 5% annually in the 20 years through 2019. A repeat is mathematically impossible, unless interest rates plunge not only into negative territory but several percentage points deep into it, which I imagine would be virtually impossible due to the appeal of zero-yield physical cash in such a scenario. Even Swiss 30-year bond