What will a 60/40 Portfolio offer in Turkey's stock markets in 2026?

Why the 60/40 Portfolio is Important in 2026?

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

The 2025 Market and Decreasing Interest Rates

The year 2025 shone as a year for Turkey that was "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. The Central Bank of the Republic of Turkey (TCMB) has lowered the policy interest rate to 38% by the end of the year, and 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 start with bonds. During periods of high interest rates, bonds offer a secure return to investors. The potential disinflation process in inflation and the decline in CDS rates signify that Turkey is once again regarded as an "investable" country.

Advantages of the 60/40 Portfolio

The 60/40 portfolio for 2026, specifically in Turkey, becomes attractive alongside the high interest rate environment and potential growth. The high initial interest offered by bonds, 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.

Strategy for a Balanced Investment Line

While adapting the classic 60/40 approach to Turkish markets, there are points that need to be considered. It is crucial to maintain a balance according to investors' risk appetite, sometimes by increasing stock weight or amplifying the bond share.

Conclusion: Expectations for Turkey in 2026

The year 2026 may offer investors a chance to recall balance with decreasing interest rates and reduced risk premiums. The 60/40 portfolio strategy can gain significance in Turkish markets, providing opportunities on both stock and bond sides. For investors, this year will be characterized by the importance of balance and timing.