60-40 equity-bond investment strategy takes a hit

A bedrock of long-term investing, a portfolio split 60-40 between equities and high-quality bonds, posted its worst monthly slide since the market meltdown in the early days of the pandemic.

Both equities and bond prices dropped sharply in January as markets priced in a faster pace of interest-rate tightening this year from the Federal Reserve. The US central bank's hawkish pivot from mid-December intensified after last week's policy meeting, with leading Wall Street economists calling for at least five and possibly as many as seven quarter-point rate hikes this year.