I agree. And that is why I have crafted a portfolio allocation that addresses the issues that you have brought up. I call this the "Portfolio for the next decade".
Energy plays 20% (oil/oil services 8%, natural gas 6%, electric utilities 6%)
Inflation plays (small caps) 20% (small cap value index fund -- 6%, managed small cap growth fund -- 8%, micro-cap fund -- 6%)
REITs 10% (3 companies -- 4%, 4%, 2%)
Pharmaceutical plays 10% (3 companies -- 4%, 4%, 2%)
Franchises 10% (KO, G, DIS -- 4%, 4%, 2%)
Seasonal S&P 500 play 20% (IN Nov-Apr, OUT May-Oct)
Short-term plays 10%
Total 100%
Please feel free to comment and also to discuss about specific stocks in the sectors for which I haven't yet indicated actual stock names.
Thanks. |
