I’m going with a Black Swan inspired ETF
portfolio, where I put the portion of my money I’m not prepared to lose (in this case, 55%) in a safe ETF
, and the rest I spread over a bunch of opportunities with a high return potential, as follows:
55% Bonds (BND)
This gives me a nice 3% per year and keeps me safe in case all the other stuff crashes.
15% ARM
(ARMH)
In case ARM
turns out to be another black swan of AAPL proportions.
15% Oil (DBO)
In case I’m right suspecting that peak oil will drive oil prices up. (Note that I used to reccommend a leveraged 2X
fund here – changed thanks to feedback.)
15% Small-Cap Stocks (VB)
In case the stock market stays healthy and a bunch of the small companies make it big.
These are my current choices, but keep in mind that, at least for the risky portion, you should probably make your own. Don’t trust me, what do I know? For that matter, what does anyone know? Trust no one. Your choices are as good as anyone else’s.