Advisors Urge 60/40 Rebalancing as Stocks Gain 11% and Bond Funds Fall 4%
Updated
Updated · CNBC · Sep 9
Advisors Urge 60/40 Rebalancing as Stocks Gain 11% and Bond Funds Fall 4%
3 articles · Updated · CNBC · Sep 9
Summary
Stocks up more than 11% in 2026 and bond funds down over 4% have likely left many portfolios more stock-heavy — and riskier — than investors intended, advisors said.
The imbalance follows years of outsized equity gains — the S&P 500 returned 24% in 2023, 23% in 2024 and 16% in 2025 — while a global bond sell-off pushed 10-year Treasury yields to their highest since 2023.
Rebalancing would generally mean trimming stock winners and adding to bonds at depressed prices, a disciplined way to lock in gains, buy lower and avoid emotional market-timing.
Advisors said investors should not treat rebalancing as a fire sale; those nearing retirement may also shift some profits into cash, while taxable-account holders should watch for capital-gains consequences.