The 60/40 portfolio split underwent a significant transformation in 2022 due to changing factors such as inflation and growth dynamics. This led to a surprising shift in the typically negative relationship between equities and bonds, making them positively correlated. However, this newfound correlation is not expected to be a long-term trend. As inflation is anticipated to stabilize in the medium term, and with inflation expectations anchored by the continued credibility of central banks and demand-driven economic shocks expected to persist, we foresee a return to the traditional negative correlation between stocks and bonds. This should result in positive diversification benefits for investors in the future, reinforcing the idea that “it’s not over until it’s over” when it comes to portfolio performance.