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Bonds Won't Save You From The Next Recession

By Seeking Alpha March 30, 2026 Bearish
Bonds Won't Save You From The Next Recession
The traditional 60/40 equity-bond portfolio no longer offers reliable downside protection due to a structural shift in equity-bond correlation. Negative correlation between stocks and bonds is not the historical norm; it prevailed during low inflation (2000–2021) and is unlikely to return soon.
The traditional 60/40 equity-bond portfolio no longer offers reliable downside protection due to a structural shift in equity-bond correlation. Negative correlation between stocks and bonds is not the historical norm; it prevailed during low inflation (2000–2021) and is unlikely to return soon.