Left for dead, the once-popular 60/40 investment strategy is about to make a comeback

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The 60/40 investment strategy proved a disappointment for some investors last year, but LPL Financial says things are brightening up.

Stocks are looking at a brighter start, one day ahead of mega consumer price data that could firm up or loosen growing consensus for another Fed rate hike next month.

That brings us to our call of the day, from LPL Financial’s asset allocation strategist Barry Gilbert, who says it’s time to reconsider a beaten-down, but once-popular investment strategy. On the equity side, he admits there is more uncertainty given Fed policy tends to act with a lag, but is also not anticipating a steeper downturn and doesn’t think markets will overreact to a modest one.

For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily. An indicator on confidence among U.S. small businesses showed confidence slipping in March, amid banking turmoil. Chicago Fed President Austan Goolsbee, Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari are all due to speak on Tuesday.Read: Why March’s CPI report could upset the stock market, seal the deal on the next rate hike

 

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