This page shows the annual return performance of the 60/40 stock-bond portfolio compared to the performance of stocks and bonds individually. The blue and grey bar represents stock and bond returns respectively, while the dark blue dot represents the total return of the 60/40 portfolio. Historically, we can observe that the 60/40 portfolio was generally able to provide downside protection in periods of market downturn as positive bond returns offset negative stock returns. While this relationship has not held up as well so far this year, we believe that the diversification will continue to provide downside protection over the long term. Investors can also consider adding alternative investments into their portfolio for additional diversification benefits.