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<p>[QUOTE=&quot;Rono, post: 1614395, member: 6492&quot;]Hi Juan,</p><p><br /></p><p>When I first read it I ran the numbers in my head and almost blew chunks on my monitor.&nbsp; 90/8/2.&nbsp; Ouch.&nbsp; Over the past 4-5 years, I&#039;ve moved it to ~60/25/15.&nbsp;&nbsp; I&#039;m still working at it.&nbsp; </p><p><br /></p><p>Where so many folks I&#039;ve been chatting with over the years get trapped is thinging that asset allocation only applies to their 401K or IRA . . . their securities, if you will.&nbsp; Good as far as it goes but they need to learn that diversification applies to life.&nbsp;&nbsp; For example, anyone still in the labor force that&#039;s not diversifying their job skills is exposing themselves and their income to needless to risk.&nbsp;&nbsp; And perhaps that&#039;s a good ending.&nbsp; It&#039;s all about risk management.&nbsp; Recognizing the probabilities of each possible outcome, the costs and benefits of each, and the consequences of any coming to pass.</p><p><br /></p><p>I doubt that the Fed is going to run us up to hyperinflation that results in a financial meltdown.&nbsp; I&#039;d give it a 15-20% chance.&nbsp; That&#039;s not much of a risk.&nbsp; However, the costs and consequences in the event we did would be so dire, that one simply has to take some modest precautions.&nbsp; Anything else is silly.</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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