Schroders argues that the classic 60/40 investment rule (60% equities, 40% bonds) is not dead but needs adjustments in stagflation scenarios. Duncan Lamont's analysis, based on 100 years of data, concludes that diversification is less reliable but does not disappear entirely, as the 60/40 portfolio outperformed isolated equities and bonds in stagflation years. The main recommendation is to shorten bond maturity to reduce sensitivity to yield rises, and consider floating rate instruments such as leveraged loans. Schroders also suggests increasing exposure to commodities and hedge funds as alternative diversifiers, and identifying defensive sectors such as healthcare and styles such as quality and value as more resilient in a stagflationary environment.
Jornal Económico27/08/26, 17:24
