Diversification Is No Longer Guaranteed

Janus Henderson / Multi-Asset

28-05-2026

Janus Henderson argues that the traditional 60/40 portfolio is becoming structurally less resilient as stock–bond correlations shift higher in a more inflationary and geopolitically fragmented world.

For most of the post-2000 era, investors benefited from negative stock–bond correlations, but historically these relationships have repeatedly reversed during higher-inflation regimes.
As correlations rise, both equities and bonds increasingly respond to the same macro shocks, reducing the diversification benefits embedded in traditional portfolios.
Janus Henderson argues liquid alternatives with low correlation profiles may partially restore portfolio efficiency, particularly when geopolitical and inflation risks dominate markets.

The report’s core message is subtle but important: diversification itself may no longer be a static assumption, but a variable shaped by the macro regime.

Multi-Asset