Your friend is very right that we are building a very unsteady house of cards. One of the MSN Money writers Bill Fleckenstein (Quite sure I’m spelling that wrong…)has just put out a book called “Greenspan’s Bubbles.” Even though he demonizes Greenspan in it, a lot of the information in the book is very sound.

I;ve been hearing a lot of theories in the PF circle lately that diversification is not the way to go.

Personally, I believe it is the way to go, but that most people do not take enough risk. A good mix of the two is probably the best bet. I;d hate to think I had a completely unbalanced portfolio just to try to earn more quicker. I plan to retire early and the secure half of my portfolio is what holds up my own house of cards.

Thanks for the article. Gave me much to think about!