60/40 portfolio in inflation trap

US Treasuries (UST) are set to keep falling out of favour as an equity hedge in 60/40 portfolios amid a return to a persistently elevated inflation regime.

A few weeks ago I showed that when 10-year yields remain above 5.25%-5.5%, the correlation between stocks and Treasuries has almost always been positive. That, however, raises more questions we should try to answer.