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And further assume that you never rebalanced this portfolio back to that 60-30-10 ratio.
That would bring your portfolio back to just under $83,000.
Rewind the same portfolio back to 1946 and it would have almost completely changed into an all-equity portfolio, at 97 percent stocks.
Sometimes, all it takes is a periodic rebalancing of your portfolio, back to your desired mix of stocks and fixed-income investments, to smooth out the bumps.
Instead of agreeing, Mr. Altfest suggested the client reallocate his portfolio back to 65 percent stocks and 35 percent bonds and then go back to that allocation whenever the stock position dropped below 63 percent.
Like the Fed, it currently insists that it will eventually sell its bond portfolio back to private investors, and the Japanese Treasury Department says it intends to repay all its debts.
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Rating agencies would be needed to analyse and rate the portfolio backing the bond.Most insurers think a capital-markets solution for operational risk is a distant goal.
A property portfolio backed by Royal Bank of Scotland that includes the Coutts headquarters in London has been sold to Legal & General Property by commercial property firm Telereal Trillium for £550m.
So, as in other markets, these investors "are stabilizing forces because when the asset goes up in value, they sell some to put their portfolios back into balance," he said.
Siegel has demonstrated the kind of investment skill that many investors need to get their portfolios back on track.
This article is part of a series I write for those who want to get their portfolios back on track.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com