MI270: How to Improve a 100% Stock Portfolio Using Return Stacking w/ Corey Hoffstein

This episode explores return stacking, an investment strategy involving layering new returns onto an existing portfolio. The discussion begins with a historical overview, tracing the concept back to PIMCO's "Portable Alpha" in the 1980s and highlighting its limited accessibility to retail investors due to the complexity of derivative trading. More significantly, the interview delves into the strategy's implementation, explaining how it can enhance returns and diversification by leveraging existing assets to incorporate alternative investments like managed futures. For instance, the conversation details how a leveraged 60/40 portfolio can be combined with managed futures ETFs to create a more diversified, potentially higher-returning portfolio. As the discussion pivots to practical application, different ETFs employing return stacking are examined, comparing their approaches and tax implications. Finally, the interview addresses potential risks, emphasizing the importance of understanding risk tolerance and avoiding over-leveraging, concluding with advice to focus on diversifying risks rather than concentrating them.