Is the 60/40 Portfolio Still Efficient Amid the AI Boom?

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Is the 60/40 Portfolio Still Efficient Amid the AI Boom?
Microsoft CorporationAlphabet Inc Class AAmazon.Com Inc
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Stocks Analysis by Francesco Casarella covering: S&P 500, Microsoft Corporation, Alphabet Inc Class A, Amazon.com Inc. Read Francesco Casarella's latest article on Investing.com

Investors saw the 60/40 portfolio face challenges in 2022 but witnessed a strong recovery in the following years.With bonds set to play a different role in today's 60/40 portfolio, we'll examine whether this strategy is still effective in today's market.

The 60/40 portfolio - a mix of 60% equities and 40% global bonds - has faced its share of ups and downs. The low point came in 2022 when bonds, instead of providing their usual defensive role during a stock market decline, suffered even more. : Dominates cloud computing with AWS, which offers AI and machine learning services, and integrates AI into logistics and consumer products like Alexa.Thanks to AI's influence, technology companies, especially those in the S&P 500, have driven significant growth in the 60/40 portfolio in recent years.

This could provide a counterbalance in the event of a stock market reversal, unlike what we saw in 2022.

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