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Investors with John A. Paulson, the hedge fund manager who has mined outsize returns thanks to gold, have seen the value of a chunk of his portfolio decline, thanks to a drop in the precious metal's price in January, according to monthly returns.
Data from a figure in The Bogleheads' Guide to Retirement Planning demonstrates the amount of portfolio decline possible for various stock/bond allocations.
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I don't want my wife to suffer through gut-wrenching portfolio declines during bear markets".
The Getty Trust's portfolio declined to $4.5 billion by a corresponding 25percentt, down from $6 billion, in the second half of 2008.
After all, if a major piece of your portfolio declines in value then you have less wealth and less ability to consume.
In fact, while JPMorgan Chase and Citigroup showed slight growth in terms of total loans in the third quarter, Bank of America's overall loan portfolio declined by about 0.9 percent compared with the second quarter, Mr. Goldberg noted.
His lawyer has said Mr. Lay was selling not because of lack of confidence in Enron but because he faced margin calls as investments in his personal portfolio declined in value.
REUTERS A Punishing Period for Paulson's Gold Fund | Reuters reports: "Hedge fund manager John Paulson's gold fund has lost 65 percent of its worth so far this year after the portfolio declined 23 percent last month, two people familiar with the fund said on Monday".
He is so convinced that a bear market looms, he said, that "it's hard for me to say that 5percentt is enough" to invest in a bear market fund, "because if you lose your job and your equity portfolio declines, 5percentt isn't going to do much".
Last year, gross unrealized gains in the portfolio declined from $31.2 billion to $14.8 billion, mainly from portfolio shrinkage.
The pain associated with steep portfolio declines has some retirement experts calling for a return to traditional guaranteed retirement benefits.
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