The 60/40 Portfolio Is Broken: Return Stacking Might Fix It

The classic 60/40 portfolio depends on bonds cushioning equities. In 2022 they fell together, and the bond-heavy portfolios fell furthest. Return stacking is one response: hold your 60/40 exposure on two-thirds of your capital through a leveraged fund, and use the remaining third for assets that don't move with it. In this video I explain how it works, what to stack and why UK investors can't easily use the American answer, what my own three-fund version has done since June 2025, including the one month where it was tested for real, and the honest case for and against letting it replace a core portfolio.

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Timestamps
00:00 Introduction
00:52 Why Correlation Flipped
01:54 The Cost to 60/40
02:34 Return Stacking Explained
03:50 Backtests and Drawdowns
05:20 What Goes in the Stack
08:23 My Portfolio Results
09:23 When Gold Let Me Down
09:45 The 2008 Stress Scenario
11:20 Final Verdict and Next Steps

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

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