What will the 60/40 Portfolio offer in Turkish Stock Exchanges 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 suggests a distribution of 60% equities and 40% bonds, providing investors with a balance between growth and stability.

The Market of 2025 and Falling Interest Rates

The year 2025 shone for Turkey as “discounted but lonely.” While stocks lost value, high policy interest rates directed investors towards low-risk deposit products. However, this period may give way to the bright face of 2026. As the Central Bank of the Republic of Turkey (CBRT) has reduced the policy interest rate to 38% by the end of the year, expectations for continued interest rate cuts have started to dominate the markets.

Foreign Investors and the Bond Market

As foreign investors begin to return to Turkey, they typically first turn towards bonds. During periods of high interest rates, bonds provide a safe return for investors. The potential for disinflation and the decrease in CDS indicate that Turkey is again showing signs of being an “investment-grade” country.

The Advantages of a 60/40 Portfolio

Specifically for Turkey in 2026, the 60/40 portfolio becomes attractive with the high interest environment and potential growth. The high initial interest that bonds offer, strong coupon yields, and possible price increases present significant opportunities for investors. It is also likely that stocks will gain value in the upcoming period.

A Strategy for a Balanced Investment Line

While adapting the classic 60/40 approach to the Turkish markets, it is important to pay attention to certain points. At times, increasing the equity weight or augmenting the bond share can lead to a need for maintaining a balance according to the investors' risk appetite.

Conclusion: Expectations for Turkey in 2026

The year 2026 may offer investors a chance to remember balance with falling interest rates and decreasing risk premiums. The 60/40 portfolio strategy could gain significance in the Turkish markets, providing opportunities in both equities and bonds. For investors, this year will be marked by the importance of balance and timing.