The main asset class that the fast money crowd ignores is bonds. This is only to their loss. I don't think I can say it better than PIMCO, on the role of bonds in an asset allocation strategy:
Bonds can play an essential role in asset allocation by diversifying risk, generating income, and preserving wealth across a range of economic and financial market conditions that can cause wide fluctuations in stocks and other asset classes.
Bonds act as ballast for portfolio. They give your ship stability in rough waters and prevent it from becoming top heavy and unstable. Benjamin Graham recommended that investors should always have at least 25% allocated to high quality bonds. For most investors he felt the target allocation should be even higher.
Now (mid October 2006) the stock market is making new highs, it is a good idea to rebalance and make sure that you are invested in harmony with your risk tolerance. Investing in bonds as an asset class is too complex to do by yourself. Hence the need for a cheap and well managed bond fund.
The problem with the passive bond ETFs is that they can not pick up obvious alpha via duration management (i.e. they don't adapt to an inverted yield curve) and they can't exploit spreads between equivalent risk bonds. Without the ability to dynamically reposition the portfolio or hedge interest rate risk, bond ETFs tend to get quite bouncy. Maybe too bouncy for most investors.
Thought by many as the best fixed income manager of the past 25 years, PIMCO's Bill Gross manages the PIMCO Total Return Fund [PTTDX], with $93 Billion in assets. PTTDX is core bond fund with an intermediate duration and average AAA credit rating. This fund is suitable for all investors.
PIMCO is also the leading subadvisors for bond mutual funds run by other companies. Bill Gross's team also manages the Managers Investment Group's Fremont Bond Fund [MBDFX] and Harbor Bond Fund [HABDX]. The Fremont Bond Fund is on the no transaction fee list at most online stockbrokers including Scottrade. Both of these funds have the same strategy as the name brand PIMCO Total Return fund (charging 0.75%) but charges 0.60%.