Higher Bond Yields and The Fed Model: Implications for Future Stock-Bond Relative Returns
We explore the historical record of the Fed Model, measured as stock-bond real yield difference, to explain future stock-bond relative total returns.
With both stocks and bonds recording losses in 2022, the 60-40 portfolio delivered its worst annual performance since the global financial crisis. What does a positive correlation between stocks and bonds mean for the future of portfolio construction? In this webinar, Noah Weisberger, Managing Director in PGIM’s Institutional Advisory & Solutions group, provides a comprehensive look at the historical drivers of stock-bond correlation and implications for CIOs to consider. Watch the replay for a discussion about allocation strategies in a positive stock-bond correlation world, the impact of positive correlation on long-term performance, and why the 60-40 portfolio remains relevant today.