I usually agree with you on things but I have to disagree about your statement that nobody should have most of his/her net worth in stocks. Stocks are the best long term investment statistically followed by amazingly art. It's better to buy and hold 100% stocks than have say 40% stocks, 20% bonds, and 40% real estate while being a great market timer. In the long run you asset allocation is most important...this bear market will be only a memory in a couple of years and people who held on certainly lost opportunities for excess gains but will be ok.

Of course everyone needs a place to live and real estate can satisfy that as well as be an investment. But stocks are the best way to go long term.

Of course you can't be stupid...I talked to a guy today who had 20MM last year in one stock and is down under 200K today. Ouch! He didn't exercise any shares.