Consider the 25‐month bear market that occurred during 2000–2002. A 100 percent stock portfolio (Wilshire 5000 Index) would have lost about 44 percent of its value, while an investor who chose a 60 percent stock/40 percent bond combination would have lost only about 17 percent. On the other hand, a 100 percent bond portfolio (Lehman Bond Index) would have gained about 23 percent in value.