Beyond the 60/40 Rule

From The Trading Desk at Stipelis

The Stipelis NAV Report

8-15-2025

For nearly half a century, the 60/40 portfolio has been the go-to allocation for investors seeking balance between growth and stability. The logic was simple: stocks provide long-term growth, bonds provide income and stability. The relationship between the two was often negative, meaning when stocks fell, bonds would rise, cushioning the blow.

But market conditions have changed. Interest rates are no longer trending steadily downward. Inflation has returned as a market driver. And global shocks—from supply chain disruptions to geopolitical tensions—are impacting markets in ways the traditional 60/40 wasn’t designed to handle.

This is where a Registered Commodity Trading Advisor (CTA) can reshape portfolio construction. CTAs trade across a wide array of global futures markets: stock indices, fixed income, commodities, currencies, and more. These markets often move independently of stocks and bonds, which means they can provide valuable diversification when traditional assets are under pressure.

Unlike passive allocations, CTA strategies are designed to adapt to market conditions in real time. They can go long or short, positioning to benefit from both rising and falling markets. This flexibility means that in years when both stocks and bonds struggle—as we saw in 2022—CTAs can find opportunities elsewhere, such as trending commodity markets or shifts in interest rate futures.

Adding a CTA allocation isn’t about replacing stocks and bonds; it’s about enhancing the overall portfolio’s resilience. When combined with traditional assets, CTAs can help reduce drawdowns, improve long-term returns, and create a more consistent performance profile.

Rethinking portfolio construction means acknowledging that market regimes change. The tools that worked in the past may not be enough for the future. A Registered Commodity Trading Advisor brings a global, multi-market perspective to an investor’s toolkit—one that’s built for today’s interconnected and often unpredictable markets.

It’s time to move beyond the 60/40 and consider what’s possible when portfolio construction adapts to reality, not tradition.

The opinions expressed are those of Stipelis Global Trading LLC and are considered market commentary. They are not intended to act as investment recommendations. Individuals should make investment decisions based on their own analysis and with direct consultation with a financial advisor.

Stipelis Global Trading LLC is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association. Member ID 0474441

THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE

SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER

SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.