Disruptor SeriesTM
Insights on the Forces Reshaping Markets A thought-leadership series exploring disruptive trends across industries and economies - and what they mean for investors. Select sessions offer CE Credits.
Build a Better Path Series
Your Clients' Portfolio May Be Built for a Market That No Longer Exists.
Build a Better Path is AB’s perspective on how advisors can navigate a market environment where traditional drivers of returns are evolving. Through webcasts, insights, and practical frameworks, it focuses on improving outcomes by managing risk, the timing of returns, and long-term sustainability
Why the Path Matters More Than the Destination
THE ADVISOR CHALLENGE
The Rules of Portfolio Construction Just Changed. Most Portfolios Haven’t.
For 40 years, advisors relied on diversification and compounding, supported by favorable economic conditions. That era is over.
Now, clients face challenges where return timing is crucial, early setbacks can derail long-term plans, and traditional diversification is less protective.
The question isn’t whether to rebuild. It’s how.
-
Return Expectations Are Shifting
-
Timing of Losses Matter
- Return Expectations Are Shifting
- Timing of Losses Matter
Retiring in 1981 vs. 1991 vs. 2001
It clearly shows return compression (10.3% to 9.0% to 6.5%) Retirement starting points have produced meaningfully different 60/40 outcomes—highlighting that return environments haven’t been uniform over time
Historical analysis and current forecasts do not guarantee future results.
Hypothetical 60/40 portfolio: 60% S&P 500 Total Return, 40% US Aggregate Bond Index
Through July 31, 2025. Source: Bloomberg and AB
The Risk/Return Trade-Off Is More Important than Ever
Experiencing a major drawdown earlier in retirement may have a greater impact on portfolio sustainability than the same drawdown occurring later.
Past performance does not guarantee future results. This is a hypothetical
illustration only. “Actual 60/40 Portfolio” represented by 60% S&P 500/40%Bloomberg Barclays US Aggregate. “Hypothetical Early Loss” portfolio swaps 1990 and 2008 monthly returns to simulate experiencing sharp drawdown early in retirement. Both portfolios incur monthly withdrawals of US$7,000.
Source: Morningstar Direct and AB
See What Comes Next
Watch the Build a Better Path webcasts to understand how market environments have evolved—and what that means for portfolio construction going forward.
Start Here: Watch Part One
Build a Better Path, Part One: What's Past is Prologue
Watch Next: Expert Perspective
When “Stay the Course” Isn’t Enough: Helping Clients Understand the Path Ahead
Sign Up
Receive updates on our quarterly Disruptor Series events
Thank You
Thanks for your subscription to AB's Disruptors Series!
Watch on Demand
Artificial intelligence has moved from “cool app” to enterprise essential—and it’s just getting started.
Our latest Disruptor Series episode digs deep into the enablers of the AI innovation wave.
We explore how the healthcare industry has evolved and offer a forward perspective on what these changes mean for all of us—as patients and investors.
The 2024 US presidential election is entrenched as one of the most eventful in the country’s history.
Today’s investment world has been called a “factor zoo,” but value was arguably the first.
US banks continue to garner headlines—almost a year removed from the heart of the regional crisis, and with the looming end of the Fed’s program to help stop the bleeding.
Featured Ideas
Decoding AI Winners and Losers in Software
The Future of AI: A Rising Tide for All
Scaling Up: The Growing Demand for Networking Solutions
The information on this website is general communication and is educational in nature. It is for informational purposes only and is not designed to be a recommendation of any specific investment product, strategy or plan design or for any other purpose. Unless specified, examples used in the materials or online tools are completely hypothetical. By providing this information, neither AllianceBernstein nor its employees have the responsibility or authority to provide or have provided investment advice in a fiduciary capacity. Commentaries and opinions provided should not be construed as suggestions for taking or refraining from any course of action and should not be viewed as investment recommendations; they are provided as part of the general marketing and advertising activities of AllianceBernstein. Please contact your financial professional for investment advice tailored to your specific needs.