Making Markets cover image

Making Markets

Corey Hoffstein: A Primer on Return Stacking - [Making Markets, EP.2]

Nov 3, 2023
Eric Golden interviews Corey Hoffstein, Founder and Chief Investment Officer of Newfound Research, discussing topics like portfolio allocation, diversification, and the innovative approach known as Return Stacking. They also touch upon lessons learned from running an Asset Management firm for 15 years.
01:09:38

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The enduring popularity of the 60/40 portfolio illustrates the significance of simplicity and familiarity in investment strategies.
  • Financial advisors face challenges in implementing diversification, including finding suitable diversification products and managing client doubts about its benefits.

Deep dives

The Mystery of the 6040 Portfolio

The 6040 portfolio, consisting of 60% stocks and 40% bonds, is commonly used by financial advisors as a benchmark. However, the origin of this portfolio allocation is unknown. While some attribute it to John Bogle, a paper from the 1950s discussing stock-bond allocation in pensions suggests the earliest recommendation of a 6040 portfolio. The widespread adoption of this allocation may have emerged organically over time. Regardless, the enduring popularity of the 6040 portfolio illustrates the significance of simplicity and familiarity in investment strategies.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner