60/40 Portfolio Collapses as Yield Shock Hits Bonds and Stocks

A historic surge in long-term bond yields is throwing a wrench into Wall Street’s traditional investment strategy: the 60/40 portfolio. Investors who rely on bonds to smooth out stock market volatility are now facing losses in both assets, leaving their carefully crafted balance off course. This brutal market shift started in May when 30-year Treasury yields surged past 5%, dragging down equity prices and disrupting the classic ‘safe haven’ bond role.