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The 60/40 portfolio, defined here as a mix of 60% U.S. equities and 40% U.S. Treasury bonds, saw a rollercoaster ride down 17.5% in 2022 and up 17.2% in 2023.1 Two hundred years of historical analysis suggests there is an 80% probability of positive returns in the two years following a year of negative returns for both stocks and bonds.
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