How a classic 60/40 portfolio fared in the 1970s inflation decade
60/40 — 60% equities · 40% cash · quarterly rebalance · physical costs on (coins) · window 1970-01-02 to 1980-01-31 · computed 2026-07-06 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) | −23.2% |
|---|---|
| Total return (nominal) | +58.0% |
| CAGR (real) | −2.6% |
| Max drawdown (real) | −38.5% |
| Recovery | not recovered in window |
| Purchasing-power ratio | 0.77× |
| Ulcer index | 22.2 |
| Worst calendar year | 1974: −14.2% |
| Physical costs paid | $0 |
| Liquidation value | $15,800 |
A $10,000 stake in a classic 60/40 portfolio (60% equities · 40% cash, rebalanced quarterly, physical costs on coins applied) entering the 1970s inflation decade would have ended the window worth $7,677 in real, CPI-deflated terms — a real return of −23.2%. Along the way it fell at most 38.5% from its peak (not recovered in window), with an ulcer index of 22.2. The same stake in equities alone returned −40.4% real — this allocation beat it by 17.1 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