Worst year for traditional 60/40 portfolio?

Stocks and bonds fell amid aggressive monetary tightening, catapulting the traditional 60/40 portfolio into possibly its worst year ever. The correlation between stocks and bonds was overwhelmingly negative for over two decades through 2021, making them a mutual hedge. While the returns of both asset classes have historically been much lower in rate hike cycles than in rate cut cycles, both underperform when inflation rises over time. The following figures cover a range of countries for the 123 years from 1900 onwards: