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Bonds vs Managed Futures: A 100-Year Perspective

Rethinking traditional asset allocation

Nicolas Rabener
10 min read
25 May 2026

SUMMARY

  • Managed futures generated a significantly higher long-term return than bonds
  • U.S. Treasury Bonds experienced a 61% loss in real terms historically
  • Correlations of bonds and equities are elevated, limited diversification benefits

INTRODUCTION

Most investors have portfolios that basically represent combinations of equities and bonds. Most investors buy bonds for diversification. And most investors are likely unaware that stocks and bonds are currently highly correlated, significantly reducing the diversification benefits bonds have historically provided.

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