Any large cash positions are vulnerable to the high rate of inflation that is an inevitable result of Fed policy in the last few years. Best bet in this economy

Any large cash positions are vulnerable to the high rate of inflation that is an inevitable result of Fed policy in the last few years. Best bet in this economy if you want safety is large cap equity issues from companies with highest quality brands, which will permit them to raise prices with their increasing costs. Another good bet is real estate, but diligence in that market requires too much time for my taste. An excellent risk-return optimized investment is an ETF short on the bond market, such as TBT. Because it's traded as an ETF, your loss is limited to whatever you pay. Because it's a short on the bond market, whose yields are at multi-decade lows, it's got pretty decent appreciation-potential. Plus you get the satisfaction of seeing all those financial services insiders (most of whom want a frothy bond market) suffer as you make money.