Average 60/40 portfolio has best month in November since 1991 – BofA

LONDON (Reuters) – November was the best month in over three decades for a classic stock and bond portfolio, as both markets posted their best returns in years, according to a Bank of America Global Research report on Friday.

A typical 60/40 portfolio – one that holds 60% in stocks and 40% in bonds – would have returned 9.6% in November, the most since December 1991, which saw the dissolution of the USSR, BofA said.

They cautioned though: “pull backs follow monster months” and such a portfolio lost 3.2% in the first quarter of 1992.

MSCI’s all country world stock index rose 9% in November, its biggest monthly gain since November 2020.

The yield on the benchmark 10-year U.S. Treasury note fell 52 basis points in the month, its most since 2011. A bond’s yield moves inversely to its price.

In the week to Wednesday, investors poured $75.6 billion into cash, $3.7 billion into bonds and $2.6 billion into stocks, the report also said, and high yield bonds saw their biggest four-week inflow since June 2020.

(Reporting by Alun John, editing by Amanda Cooper and Sharon Singleton)