Despite recent challenges, including muted returns, structural shifts, and evolving correlations, bonds retain unique diversification, planning, and return stacking potential that equity-only alternatives cannot fully replicate.
The most common question we hear from advisors is what’s the optimal stack? So we ran the optimizer — bootstrapping 10,000 simulated 25-year histories across five asset classes to find the portfolio that would have maximized return at 60/40 volatility.
Despite recent challenges, including muted returns, structural shifts, and evolving correlations, bonds retain unique diversification, planning, and return stacking potential that equity-only alternatives cannot fully replicate.
In this article, we walk through portfolio construction choices for a hypothetical Return Stacked® strategy designed to provide 100% U.S. large-cap equity exposure and 100% broad U.S. Treasury exposure.