Fidelity's Timmer Doubts 60/40 Revival as Stock-Bond Correlation Slips

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By Dextape Desk · November 5, 2026

Fidelity Investments' global macro director Jurrien Timmer doubts the 60/40 split, with 60% stocks and 40% bonds, has returned. Per his chart, the five-year stock-bond correlation stays positive at current Treasury yields, after plunging deep below zero in 2013 and 2020 when yields were minimal. Data through November 2 put the latest reading at 10% to 12%. Timmer notes that shorter 13-week readings have slipped or turned negative during the 1998 Long-Term Capital Management turmoil, the dot-com crash and the 2025 selloff, while the longer trend stayed positive. Treasuries rallied during October's AI stock selloff, pushing the 10-year yield below 5%. Timmer instead points to a 60/20/20 mix, with the final 20% in alternatives, gold, Bitcoin and cash, per a May 2025 Fidelity note.

Why it matters: It bears on whether bond holdings still offset stock losses for portfolios relying on the classic 60/40 split.

Mentioned: Bitcoin, Fidelity

Summary by Dextape, based on reporting by BeInCrypto. Written with AI from the publisher’s text and checked automatically for copied wording and unsupported figures. Not investment advice.