If an investor is happy with 2 to 3 %, then that's fine keep on with too much or ineffective diversification.  I prefer 6 to 8 % that I receive consistently by dividend investing.  I haven't owned fixed income since about 1984.  I can look back at income trust income and then a conversion to corporations when dire predictions didn't happen.  Book value of long term investments are so far below today's values that a 30 to 50 % correction wouldn't touch them.  Traders of course would say otherwise.  As Larry says, what he's looking at are paper values.  Cash in hand to spend or  reinvest, I believe is more important.