Following my post this week on the worst 10 year 50/50 stock/bond portfolio returns I received a number of requests from people asking what these performance numbers would look like on a real (inflation-adjusted) basis. Here are annualized the results:
The deflationary period of the 1930s actually improves the performance of those 10-year cycles. A few of these returns did drop into negative territory after accounting for inflation. Two of the negative 10 year returns occurred in the highly inflationary 1970s period while the 10 year stretch from 1937-1946 was just slightly negative.
Curious what your equity to bond split is in your portfolio Ben?
I’m now 100% equities.
Yeah I generally take the barbell approach and have more of my retirement money in stocks but all of my savings in online savings accounts. Basically really long-term capital and short-term money.