And the trade-off is also appealing: the un-rebalanced portfoliogained 47.9% on the rebound from March 2009 through the end of 2010, while the rebalanced portfoliogained a close 44.3%.
In the third quarter, when the stock fund lost a sickening 13.8 percent, the bond fund gained 5.4 percent, so theportfolio as a whole lost only 4.2 percent.