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One of my collegues just produced a chart with the top ten index returns each year from 1983 through 2005 for a series of indexes we track.  I found it interesting as it pointed out another reason for diversification.  See if you agree.  I will post just the number 1 performing index each year.

1983 - 38.6%  Russell 2000 Value
1984 - 15.2%  Merrill Lynch Domestic Master (a bond index)
1985 - 56.7%  International (Europe, Australia, Asia, Far East - EAFE)
1986 - 69.9%  International (Europe, Australia, Asia, Far East - EAFE)
1987 - 24.9%  International (Europe, Australia, Asia, Far East - EAFE)
1988 - 29.5%  Russell 2000 Value
1989 - 35.9%  Russell 1000 Growth
1990 -   9.1%  Merrill Lynch Domestic Master (a bond index)
1991 - 51.2%  Russell 2000 Growth
1992 - 29.1%  Russell 2000 Value
1993 - 32.9%  International (Europe, Australia, Asia, Far East - EAFE)
1994 -   8.1%  International (Europe, Australia, Asia, Far East - EAFE)
1995 - 38.3%  Russell 1000 Value
1996 - 23.2%  S&P500
1997 - 35.2%  Russell 1000 Value
1998 - 38.7%  Russell 1000 Growth
1999 - 43.1%  Russell 2000 Growth
2000 - 22.8%  Russell 2000 Value
2001 - 14.1%  Russell 2000 Value
2002 - 10.4%  Merrill Lynch Domestic Master
2003 - 48.5%  Russell 2000 Growth
2004 - 22.2%  Russell 2000 Value
2005 - 14.0%  International (Europe, Australia, Asia, Far East - EAFE) So, sometimes the best performers are domestic, sometimes international.  Sometimes the best performers were stocks, sometimes bonds.  Sometimes the best performers were large cap, sometimes small cap.  Sometimes the best performers were growth stocks sometimes they were value stocks.  Makes you want to diversify.