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.
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.
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.
By understanding the different roles played by “immediate responders,” “delayed responders,” and “diversifiers,” and by applying innovative techniques such as return stacking, advisors can help clients navigate volatility without reducing core stock and bond allocations.
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.
This post examines an Absolute Return stack that layers diversifying return streams over a core 60 / 40 portfolio. The objective is steadier performance and a higher information ratio so that clients remain confident regardless of market direction.