This page shows the annual return performance of the 60/40 stock-bond portfolio compared to the performance of stocks and bonds individually. The grey and green bar represent stock and bond returns respectively, while the light 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. Over the long term, diversification can still provide downside protection. Investors can also consider adding alternative investments into their portfolio for additional diversification benefits.