60/40 Classic
The 60/40 portfolio is the most widely referenced balanced allocation in finance: 60% equities, 40% bonds. This page shows its forward-looking expected return, risk, and Sharpe ratio using J.P. Morgan 2026 capital market assumptions.
Allocation
What if you add Bitcoin?
Adding Bitcoin changes the risk-return profile. Here is how different allocations compare, reducing other positions proportionally:
| Portfolio | Return | Volatility | Sharpe |
|---|---|---|---|
| Base (60/40 Classic) | 5.95% | 10.63% | 0.27 |
| With 5% Bitcoin | 6.40% | 10.93% | 0.30 |
| With 10% Bitcoin | 6.86% | 11.58% | 0.32 |
Returns are geometric (compound). Sharpe ratio uses 3.10% risk-free rate (US Cash, JPM LTCMA 2026). Forward-looking estimates, not predictions.
How these numbers are calculated
Expected returns and volatilities come from J.P. Morgan's 2026 Long-Term Capital Market Assumptions (30th edition). Portfolio risk is computed using the full 27x27 correlation matrix, not simple weighted averages. The Sharpe ratio uses 3.10% (US Cash) as the risk-free rate.
For full methodology details, see the methodology page.
Customize this portfolio
Adjust weights, add constraints, try different optimization methods.