THIS WEEK:

• Market crushed as the credit crisis rolls on, will this rebound last? (1:00)
• Is the next crisis in the Hedge Fund industry? (22:20)
  
• Myth or Reality: A well diversified portfolio has 20 stocks? (30:18)
  
• Paul's Outrage: Selling low and buying high (48:22)
  
• Our Guest:  Robert Shiller, author of The Subprime Solution, professor at Yale University (7:53)

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This week on Sound Investing

The largest single day decline of the Dow Jones Industrial Average since 9/11 left many investors worried this week.  But Paul, Tom and Don know you should be worried about something larger:  is your portfolio built for the amount of risk you can handle?  

I haven’t felt this kind of sadness since the Osmond’s split up.  The 2 trillion dollar hedge fund business is in trouble, Few dollars are coming in, the funds are losing money this year, and investors may take billions of dollars from hedge funds later this fall.  Get the gang’s take on this sad situation.
 
Is it a Myth or Reality: A well diversified portfolio needs only 20 stocks?  Get Paul’s sharp answer.

Plus, many investors want to sell now that the stock market has fallen.  But Paul says selling low and buying high is a huge outrage.

Our guests include Robert Shiller, author of The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It.

Next week we’ll hear from renowned pollster John Zogby.