But I really don't know where it is proven that the only way for a retired person to invest is to buy and hold a random assortment of stocks.
Why should it be so? It may work, and it may not. Your statement about today being better than the 70s or the early 30s is true-so far.
BTW, see my post from yesterday:
http://www.early-retirement.org/forums/f28/current-dow-industrials-technical-position-36173.html
Great points and great call. I sure didn't see this one coming.