As for the internet group, these stocks roared even though many are years from making a profit and a number in the sector possibly never will. Volatility can create havoc. When the markets are jumping higher, not a soul complains about the volatile market conditions. Volatility on the downside creates a good deal of pain and lessons learned. Should a stock increase in value, you can always raise the stop loss.
Asset allocation is alive and well.
Many investors have just experienced their first down year ever. The fixed income sector outperformed the stock sector for the first time in years. Even money market returns were preferable. One rule of thumb is subtract your age from 100 and that is the percentage of stocks or stock funds you should have. I disagree with that theory due to the simplicity.