This is the typical investment advice, and it's generally outdated and wrong to just invest in index funds based on asset classes if your goal is to diversify a

This is the typical investment advice, and it's generally outdated and wrong to just invest in index funds based on asset classes if your goal is to diversify away volatility. For a layman's treatment debunking this view (don't mind the title): http://www.amazon.com/Jackass-Investing-Dont-Profit/dp/0983504008 http://www.amazon.com/Jackass-Investing-Dont-Profit/dp/09835... for a more academic flavor: http://www.amazon.com/Expected-Returns-Investors-Harvesting-Rewards/dp/1119990726 http://www.amazon.com/Expected-Returns-Investors-Harvesting-... the best book on stock picking i've read: http://www.amazon.com/Quantitative-Value-Web-Site-Practitioners/dp/1118328078 http://www.amazon.com/Quantitative-Value-Web-Site-Practition...