5 ms·

i'd say diversified portfolio of stocks index, bonds index and, say, gold.

• cheriot 10y ago
  Bonds returns are highly correlated with stock returns and gold gets eaten away by inflation. For money you don't need to spend in the next 7 years (so you can wait out a recession) it's hard to beat a stock index.
  • EvgeniyZh 10y ago
    "For example, a “simpleton’s portfolio” consisting of one quarter each U.S. large stocks, U.S. small stocks, foreign stocks, and U.S. high-quality bonds had a higher return, with much lower risk, than large U.S. stocks alone (represented by the S&P 500 index). The S&P 500, in turn, performed better than 75% of professional money managers over the same period." (c) W.J. Bernstein, The Intelligent Asset Allocator, based on a study by T. Rowe Price, from 1973 to 1992. The gold was used as a replacement, because I'm not from US, and it worked well for Russia, giving average yearly 48,9% compared to 24,4%, 31,5%, 28,1% for stocks, bonds and gold for 1997-2009 period.