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 prescribes a distribution of 60% stocks and 40% bonds, offers investors a balance between growth and stability.

The Market of 2025 and Falling Interest Rates

The year 2025 shone as a year that was “discounted but lonely” for Turkey. While stocks lost value, high policy interest rates directed investors towards low-risk deposit products. However, this period could shift in favor of a bright 2026. The Central Bank of the Republic of Turkey (CBRT) had lowered the policy interest rate to 38% by the end of the year, and expectations of continued interest rate cuts began to dominate the markets.

Foreign Investors and the Bond Market

As foreign investors start to return to Turkey, they typically first turn to bonds. During periods of high interest rates, bonds provide a secure return to investors. The likelihood of a disinflation process and the decline in CDS indicate that Turkey is again a “investable” country.

Advantages of the 60/40 Portfolio

For 2026 in Turkey, 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 potential price increases present significant opportunities for investors. Stocks are also likely to gain value in the upcoming period.

Strategy for a Balanced Investment Line

When adapting the classic 60/40 approach to Turkish markets, there are points to consider. Sometimes, it is essential to maintain a balance based on the investors' risk appetite, whether increasing the stock weight or increasing the bond share.

Conclusion: Turkey’s Expectations for 2026

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