Source : FRED Data, JQR Capital Asset Allocation Historical Performance Last time we examined the accuracy of investment “experts” (AKA market gurus) in predicting the future movements of the stock market. Numerous studies have shown that very few of these experts were able to accurately add value when compared to the proverbial coin toss over a long period of time. In this post we are going to simplify our asset allocation back to our two risky asset cases - stocks vs. bonds (and combinations thereof). The chart shown above displays the historical performance for several combinations of stocks and bonds over the last 50 years. It is no surprise that a 100% stock portfolio turned $1 into almost $156 and that a 0% stock (100% bond) portfolio was the least effective in generating wealth over that time period. Introducing the 60/40 Portfolio  One thing you may notice is that every portfolio tracked in the chart shown above gained a significant amount of money over the 50 year time perio