A typical 60/40 portfolio of stocks and bonds is not truly diversified because stocks are about three times more volatile than bonds, so you are mostly diluting equity returns rather than achieving true diversification of returns.

causalpending

Speaker

Cliff Asness

Evidence Quote

a 60/40 portfolio stocks are about three times more volatile than bonds...you're mostly diluting equity returns, not diversifying the direction of bonds.

Source

The Bridge Ep. 11: Expensive Isn't a BubbleiCapital
Created: 8/12/2026, 6:23:51 PM

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