How a 60/40 stocks-and-cash portfolio fared in the dot-com bust
60/40 (stocks/cash): 60% equities · 40% cash · quarterly rebalance · physical costs on (coins) · window 2000-03-24 to 2007-05-30 · 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) | −7.0% |
|---|---|
| Total return (nominal) | +12.5% |
| CAGR (real) | −1.0% |
| Max drawdown (real) | −33.4% |
| Recovery | not recovered in window |
| Purchasing-power ratio | 0.93× |
| Ulcer index | 18.1 |
| Worst calendar year | 2002: −13.5% |
| Physical costs paid | $0 |
| Liquidation value | $11,246 |
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 dot-com bust would have ended the window worth $9,302 in real, CPI-deflated terms: a real return of −7.0%. Along the way it fell at most 33.4% from its peak (not recovered in window), with an ulcer index of 18.1. The same stake in equities alone returned −17.1% real. This allocation beat it by 10.2 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