There has been much written of late about risk, diversification, and some time honored ways to participate in very volatile and uncertain markets with the hope of reduced risk profiles.
Complicated theories abound. The basic theme of many is to reduce volatility and diversify. This thought has been around for many years. It has been called by many names, but despite exotic packaging it is still Modern Portfolio Theory. MPT has proven profitable for many, and the Holy Grail for others.
Regarding U.S. investors, my answer is far too simple for many. I believe one should invest a comfortable amount of needed safe cushion funds in laddered U.S. Treasury securities. In my case this is 75% of available assets. The remainder should be thoughtfully but aggressively invested in available ETFs. For investing in EFTs I believe SectorSurfer is the definitive and necessary tool.
Please contact me for further background and information on this theme.
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