What will a 60/40 Portfolio offer in the Turkish Stock Markets in 2026?

Why the 60/40 Portfolio is Important in 2026?

The year 2026 may bring significant changes for investors in the Turkish stock markets. The traditional 60/40 portfolio strategy, which forecasts a distribution of 60% equities and 40% bonds, offers investors a balance between growth and stability.

The Market of 2025 and Declining Interest Rates

The year 2025 shone as a "discounted but lonely" year for Turkey. While stocks lost value, high policy interest rates drove investors towards low-risk deposit products. However, this period may give way to the bright side of 2026. The Central Bank of the Republic of Turkey (CBRT) has lowered the policy rate to the level of 38% by the end of the year, and expectations for continued interest rate cuts have begun to dominate the markets.

Foreign Investors and the Bond Market

As foreign investors begin to return to Turkey, they typically first turn to bonds. During periods of high interest rates, bonds offer a secure return to investors. The likelihood of disinflation and the decrease in credit default swaps (CDS) indicate that Turkey is once again a "investable" country.

Advantages of the 60/40 Portfolio

For 2026, the 60/40 portfolio is becoming attractive with the high interest environment and potential growth. The high initial interest offered by bonds, strong coupon yields, and possible price increases present significant opportunities for investors. Stocks are also likely to gain value in the upcoming period.

Strategy for a Balanced Investment Line

While adapting the classic 60/40 approach to the Turkish markets, it is essential to consider certain points. Balancing based on the investors' risk appetite is crucial, whether it is increasing the equity weight or expanding the bond share.

Conclusion: Expectations for Turkey in 2026

The year 2026 may present an opportunity for investors to remember balance again, with declining interest rates and a decreasing risk premium. The 60/40 portfolio strategy can gain significance in the Turkish markets, providing opportunities on both the equity and bond sides. For investors, this year will be one of the most important elements of balance and timing.