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To: Kirk © who wrote (3221)2/5/1998 7:47:00 PM
From: sea_biscuit  Read Replies (1) | Respond to of 42834
 
I think all this is kinda moot if one diversifies beyond the S&P 500. How can the above scenario materially affect the fortunes of the following allocation (which is balanced once a year)? My guess is that there would be very little effect on such a portfolio.

25% US Large (S&P 500 Index)
25% US Small (Russell 2000)
25% US Bonds (e.g. Vanguard's GNMA fund)
25% International Stock (e.g. Vanguard's Total International)

Dipy.