So far as I am concerned, asset allocation is bunk. You should be in the asset classes that are moving up the most. When the momentum goes down in what you have, move elsewhere or go to cash.

Of course, if you want a "set it and forget it" approach, you can find some asset allocation scheme. But that is a terrible way to invest.

Several years ago, some idiot commentator said that market fluctuations were just "statistical noise". He never defined the term, and neither have I. But I did write a (hopefully funny) presentation about the topic.

http://www.actwin.com/kalostrader/StatisticalNoise.html