What Will the 60/40 Portfolio Offer in Turkish Stock Exchanges in 2026?

Why is the 60/40 Portfolio Important in 2026?

The year 2026 may bring significant changes for investors in the Turkish stock market. 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

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

Foreign Investors and the Bond Market

As foreign investors start to return to Turkey, they typically begin by moving towards bonds. During times of high interest rates, bonds provide a safe return for investors. The potential for disinflation in inflation rates and the decline in credit default swaps (CDS) indicates that Turkey may once again be considered an "investment-grade" country.

Advantages of the 60/40 Portfolio

The 60/40 portfolio for Turkey in 2026 is becoming attractive due to the high interest environment and potential growth. The high initial yield offered by bonds, strong coupon returns, and possible price increases present significant opportunities for investors. It is also likely that stocks will appreciate in value in the forthcoming period.

Strategy for a Balanced Investment Line

When adapting the classic 60/40 approach to the Turkish markets, there are key points to consider. At times, increasing the stock weight or amplifying the bond share is necessary, so it is crucial to maintain a balance according to the investor's risk appetite.

Conclusion: Expectations for Turkey in 2026

The year 2026 may provide investors with an opportunity to recall the importance of balance, alongside decreasing interest rates and a declining risk premium. The 60/40 portfolio strategy may gain meaning in the Turkish markets, providing opportunities on both the stock and bond sides. For investors, this year will be one of the essential elements of balance and timing.