Not long ago, while relaxing together in a swimming pool at a German resort, they came up with the idea of offering portfolios of several instruments valued collectively at two or ten or fifty million dollars — in the manner of small-cap, medium-cap, or large-cap private-equity investments — to appeal to clients so wealthy that a million-dollar instrument is insufficiently enticing.
Not long ago, while relaxing together in a swimming pool at a German resort, they came up with the idea of offering portfolios of several instruments valued collectively at two or ten or fifty million dollars in the manner of small-cap, medium-cap, or large-cap private-equity investments to appeal to clients so wealthy that a million-dollar instrument is insufficiently enticing.
You will not only be taking the appropriate amount of the risk, you will have some idea of how your portfolio will do in a down year.
While stressing that his priority is for the companies to solve their problems, Mr. Bush did not reject the idea of raising the portfolio limits.
With Nasdaq halved and the Dow flirting with bear-market territory, the idea of protecting your portfolio from downside risk may seem a little like buying flood insurance when your living room is under four feet of water.
"Any idea of an optimal portfolio is based on historical data, and the world changes," says Warnock, the finance professor.
And we also know that the idea of the product portfolio was flawed.
That makes me question the whole idea of asset allocation and portfolio mix.
Like many other investment tools, Quick Check will give you an idea of how your recommended portfolio would have fared historically.
