Timeline for Questions on a 60/40 portfolio outperforming stocks over the last 20 years
Current License: CC BY-SA 4.0
9 events
| when toggle format | what | by | license | comment | |
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| Dec 7, 2021 at 3:27 | comment | added | base64 | @JTP-ApologisetoMonica It seems that Morningstar does not show comparison by category for more than 10 years. What we know is that Fidelity website shows that Fidelity Balanced Fund significantly deviated from Fidelity Balanced Hybrid Composite Index (i.e the real 60/40) since 1986, and that the End Value is lower than 100% SPY if counted since 1986 instead of 2000. i.sstatic.net/M7lN2.png | |
| Dec 7, 2021 at 0:40 | comment | added | JTP - Apologise to Monica♦ | @base64 - I wonder how many active funds have a similar description of their investment mix, and what the range of returns is. The premise was a pure 60/40 S&P/treasury mix, not this nonsensical backpedaling. I’m sure there exists some decades where the 60/40 beat the S&P, but not these two decades. | |
| Dec 6, 2021 at 21:57 | comment | added | base64 | I have edited my original answer, please fiddle with the Excel file: mediafire.com/file/p34fe2y7td4dchx/6040_vs_SPY.xlsx/file | |
| Dec 6, 2021 at 20:48 | comment | added | Daniel May | I provided sources and dates for our data - 10-Year Treasury from macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart and SPY adjusted close from Yahoo Finance. Value on Mar 23, 2020 = 218.02. Value on Dec 1, 2021 = 450.50. That's a return of 106.6%. Again, we didn't always measure from the 1st of every month since we were trying to show bull and bear markets. But it makes absolutely no difference in the total overall return because 1) it is a lump sum invested on Jan 1, 2000 and no additional investments and 2) the time period is the same, Jan 1, 2000 to Dec 1, 2021. | |
| Dec 6, 2021 at 20:39 | comment | added | base64 | It is not ideal to cherry pick Active Equities. For all I know, they could have 50% bonds at 2000 and moved more into QQQ equivalent. I presented to you actual funds that represent 60/40, the model 60/40 based on Modern portfolio theory by Nobel Economist. I also presented actual Treasury ETFs that represented 10-year. I have yet to see the Excel supporting your original claim, nor how you can achieve 64.6% MAR2020 to NOV2021 return for the "60/40", nor how you can achieve 106.6% for SPY in the same small period. | |
| Dec 6, 2021 at 20:34 | comment | added | Daniel May | The target allocation is 60/40, with a range of equities between 50-70%. If you look at the equity holdings of the fund the overwhelming majority is in U.S. large cap stocks that are in the S&P 500. Obviously this fund is different from our example, as the difference in returns shows, but it shows how a 60/40 real-world fund outperformed the S&P 500 since Jan 2000. | |
| Dec 6, 2021 at 20:11 | comment | added | base64 | Even today, FBALX is is 73% Active Equity, 27% Bonds fund. It neither contains S&P 500 nor it is 60/40. | |
| Dec 6, 2021 at 19:57 | comment | added | Daniel May | @base64 Sorry, was unable to post this image in the comments. | |
| Dec 6, 2021 at 19:56 | history | answered | Daniel May | CC BY-SA 4.0 |
