Return Stacking as a Diversification Strategy

Return stacking is primarily aimed at addressing diversification issues within investment portfolios. Traditional approaches often default to a 60% stocks and 40% bonds allocation, which lacks exposure to alternative assets like commodities or gold. The concept emphasizes adding alternative investments without needing to sell existing positions in stocks or bonds, thereby overcoming the high hurdle of making room for these diversifiers. This addition allows for greater consistency in achieving desired investment outcomes while ensuring emotional factors in investment decisions are taken into account.