Thanks for all the feedback. For the record, I don't follow ESRBob's recommendations verbatim either. I use his allocation as a starting point and then revise it according to my comfort levels.
I suppose the fact that I was feeling a little guilty over not following the allocations blindly is what prompted me to ask the question. Now I know that I'm not much different than the rest of you.
Just saw this post -- you mean you don't follow my advice verbatim?
Good, neither do I!
(Rich in Tampa was right)
Asset allocation is a personal and dynamic thing. Find targets that feel comfortable (and find as many different points of reference on how they have fared over time) and move toward them at a pace you feel comfortable with, with liberal adjustments for special circumsances.
I like the balance of 40% Equities, 40% bonds and 20% Other, and found lots of other data supporting something like a 50%-50% split giving a nice blend of low volatility and acceptable expected returns. (RetiredInvestor.com has a lot of good studies on different AAs if you're feeling like subscribing).
Then you go the next level into the kinds of equities, or bonds or other asset classes you want -- how much international, small, and what kinds of value/growth blends. With my financial advisor/collaborator for the book we tested a lot of scenarios with as many years of data as we had for this universe, but there will always be longer data series one could want on the more exotic asset classes.
As for my current deviation -- have more private equity than warranted, since I am stuck in an illiquid position in a company that is actually doing well. boo hoo.
Also, we had an investment in a condo which I got sick of (lousy building) and sold for no gain, but haven't felt ready to buy more REITs while I wait around for another good commercial real estate opportunity, so I'm underweight RE for the foreseeable future.
Think of it this way: the day after you rebalance, your AA had drifted from your targets. By a year or two later, when you rebalance again, it will have drifted further. So don't worry about getting AA precisely right -- it will always be off by at least a bit, and maybe more than a bit.