Inflation Will Hurt Both Stocks and Bonds

Rising inflation in the United States and around the world is forcing investors to assess the likely effects on both “risky” assets (generally stocks) and “safe” assets (such as US Treasury bonds).

The traditional investment advice is to allocate wealth according to the 60/40 rule : 60% of one’s portfolio should be in higher-return but more volatile stocks, and 40% should be in lower-return, lower-volatility bonds.