cma

Asset Allocation: The Key to Proper Diversification

"proper diversification likely could have avoided 40% losses caused mainly by one sector."
Wrong, your own statistics show that only retrospective "proper diversification" could have reduced losses. If one had a market weight with "proper diversification" one would have lost 40% +.

Friday Outlook: Danger on All Sides

Putting aside the true long-term perspective (suitable only for well funded life insurance cos. like Berkshire Hathaway), I agree with David about the longer-term perspective: it's quite risky to hold an intermediate-term short position here, based on RSI, cash levels and and longer-term sentiment measures.
Of course we should not be surprised by further near-term tests of the $SPX 750 low.