i would disagree that there are no fundamentals involved. imagine that you have an opportunity to invest in india and say, Iraq. (i take the iraq example solely from a risk perspective). it's unlikely that you'd put a bucket load of money in iraq though logic says that iraq and it's economy is so beaten down that it can go nowhere but up from here in the long run. so lets say that you have 2% invested in iraq and the rest in india. today when ou have a downslide in india, you'll try to protect your 98% pie. iraq's returns may have been 100% but that's only 2% of your money. you'd sell that and try to save your shirt here. maybe when things settle down you'd go back to iraq with a wee bit. 50 years later you'd tell your grandkids that "if only i had invested 50% in iraq and let it lie there". but that's humna nature. and that's FUNDAMENTAL.
