There is a lot of talk lately regarding the 60/40 portfolio due to its simplicity and performance (2020 included). It surely gives good argumentation to the passive management camp and makes investing look simple. Unfortunately investing is not simple, the 60/40 portfolio is not magic and in the current environment it may prove to be a significant source of risk for the market participants.

In this series of posts we intend to highlight significant events in the history of financial markets. Learning from the past helps us understand the evolution of things and can also give us insights into the future. We believe this is particularly true for the financial markets.