Subject: Re: Stock Market Concentration-Good? Bad?NotImpo
Well, I'm probably not the best guy to comment on funds as they generally make up a small part of my portfolio. That said, there are still a few truisms:

While a truly diversified portfolio will rarely return the same as the hottest of the momentum stocks, quality is always in style and there is less of a chance of total loss if the market winds suddenly reverse.

The question is not whether to diversify, but rather how to do so. My personal approach is to choose a series of sectors that I believe will benefit from long-term macroeconomic trends and then invest in them in a variety of countries and in a number of different currencies.

Currently, less than half of my portfolio is made up of US-based companies.

In my opinion, the major challenge/risk is a global glut of governmental and commercial debt. The portion of this debt which is leveraged towards the purchase of equities as a commodity (margin) has grown high enough to make the entire equity/debt market very fragile. What goes up, sooner or later, goes down - the higher the rise, the further the drop to the mean.

Jeff