How a 60/40 stocks-and-cash portfolio fared in the 1987 crash
60/40 (stocks/cash): 60% equities · 40% cash · quarterly rebalance · physical costs on (coins) · window 1987-08-25 to 1989-07-26 · computed 2026-07-13 with the same engine the app runs.
Solid: this portfolio, real (CPI-deflated) value of $10,000. Dashed: the all-equity baseline.
| Total return (real) | −1.0% |
|---|---|
| Total return (nominal) | +7.8% |
| CAGR (real) | −0.5% |
| Max drawdown (real) | −20.6% |
| Recovery | not recovered in window |
| Purchasing-power ratio | 0.99× |
| Ulcer index | 11.8 |
| Worst calendar year | 1988: +10.6% |
| Physical costs paid | $0 |
| Liquidation value | $10,782 |
A $10,000 stake in a 60/40 stocks-and-cash portfolio (60% equities · 40% cash, rebalanced quarterly, physical costs on coins applied) entering the 1987 crash would have ended the window worth $9,899 in real, CPI-deflated terms: a real return of −1.0%. Along the way it fell at most 20.6% from its peak (not recovered in window), with an ulcer index of 11.8. The same stake in equities alone returned −7.8% real. This allocation beat it by 6.8 percentage points of purchasing power. This allocation carries no physical sleeves, so no ownership costs applied.
Open this portfolio in the stress-tester More scenarios
The link above prefills the allocation. Adjust weights, costs, and windows from there. Sources and formulas: methodology.
Educational estimates, not financial advice