The popular 60:40 equity:bond portfolio strategy, successful in the past decade due to low interest rates, now faces challenges. Rich share valuations, persistent inflation, and geopolitical uncertainties, including AI’s impact, demand a re-evaluation. Investors should consider diversifying beyond equities as valuations suggest lower returns compared to safer fixed-income options, potentially avoiding a prolonged period of market stagnation.
US Treasury yields slip as AI concerns boost safe haven demand ahead of 20 year auction
US Treasury yields slipped as investors weighed the impact of higher borrowing costs on AI stocks, with the 10 year yield heading for a second
October 21, 2026