I'd also check out this post over at Get Rich Slowly:

http://www.getrichslowly.org/blog/2009/06/02/the-lazy-way-to-investment-success/

Gibson has done one of the best. As stated by Sean_Sebold, we just had a market we didn't want. There are, as usual, folks coming out of the woodwork claiming to have the "new" answer. Capital markets have not changed. The principals of capitalism haven't changed.

One "failure" is not having adequately differing asset classes in a portfolio. For example, there is a small stock premium. Some have noted that the Russell 2000 didn't have a premium over large stocks for many years. The error here is that the small stock premium was identified in stocks much smaller than those that populate the Russell 2000. It was discovered in the 4% smallest stocks in the US market. The Russell 2000 small cap index doesn't even contain stocks this small.
Be clear on your asset classes.

Hi Paul,

I agree with Robert that John Bogle is a great resource when it comes to asset allocation. In addition to his books, Bogle also writes articles for the Wall Street Journal from time to time that put his views on asset allocation in context of the current economy. You can find these articles by searching for Bogle's name in FiLife's story database: http://www.filife.com/search?cx=017116089107408622877%3Apc0xeuygqwq&cof=FORID%3A10&ie=UTF-8&q=bogle&commit.x=17&commit.y=18&q_error=#1409

I also really like Marketwatch's Lazy portfolio section. I would check that out too.

Hope this helps,
Kristen

Paul -

Can you explain more about why times have changed, and you believe the above?

I'd recommend considering John Bogle's book "Enough."

Personally, I feel he does a far superior job of explaining the 'whys' behind his philosophy, and dismissing short-term speculative strategies than may have worked over the past 10 year, then those that present a speculative strategy that 'worked' over a horizon of 5-10 years.

Overall, I don't feel those that pitch the 'new' asset allocation approaches understand financial systems like Bogle. I also don't buy the speculative approaches; it seems to me in a multi-faceted economy, those pitching a simple approach to investing are simply selling an idea that worked over the short-term, and not addressing the reasons for investing that don't fit into speculating models. Though we don't always see eye-to-eye, Bogle addresses these 'new' ideas on asset allocation masterfully.

But I am ordering a few other books that seem to disagree with Bogle that I'll be sure to follow-up on if I feel they out explain him in any way!

I would agree with Sean and say Gibson has one of the best on asset allocation though very dry. However, if you do decide to read it, I would follow it up with The Psychology of Investing by John Nofsinger. It is a quick read and give insight why people do not follow traditional asset allocation.

Check out David Swenson's books on asset allocation. Swenson is the endowment manager for Yale. www.wealthmanagement1.com

The old books on asset allocation are even more relavant in todays investment world. We had left proper allocation with the last 20 years of vertical climbs in the equity markets. The last 10 have left everyone thinking that it is different this time. It is not different. We just experienced results that we didn't want. It doesn't mean that they are wrong.

Roger Gibson's Asset Allocation is one of the better books on the subject.

http://www.amazon.com/Asset-Allocation-4th-Roger-Gibson/dp/0071478094/ref=sr_1_1?ie=UTF8&s=books&qid=1245955356&sr=8-1