How a 60/40 stocks-and-cash portfolio fared in the Volcker double-dip
60/40 (stocks/cash): 60% equities · 40% cash · quarterly rebalance · physical costs on (coins) · window 1980-11-28 to 1982-08-12 · 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) | −18.8% |
|---|---|
| Total return (nominal) | −7.3% |
| CAGR (real) | −11.5% |
| Max drawdown (real) | −18.8% |
| Recovery | not recovered in window |
| Purchasing-power ratio | 0.81× |
| Ulcer index | 10.2 |
| Worst calendar year | 1981: +0.8% |
| Physical costs paid | $0 |
| Liquidation value | $9,273 |
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 Volcker double-dip would have ended the window worth $8,125 in real, CPI-deflated terms: a real return of −18.8%. Along the way it fell at most 18.8% from its peak (not recovered in window), with an ulcer index of 10.2. The same stake in equities alone returned −36.1% real. This allocation beat it by 17.4 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