If bond type instruments are your alternatives with a guaranteed loss ..then where will you invest? Cash is nice in a bear market but it doesn't yield so you are left with little choice.Equities and cash are the only choices both obvious and sensible.Even mildly overpriced equities are arguably better than bonds.I suspect a good allocation to zero return cash will have a great returnif it's deployed somewhere vaguely near the bottom of the next bear,even counting how many years that might take.I say "obvious" above because there are always the non-obvious things.Buy rental properties in Frankfurt?(house prices now rising after a 30+ year bear market)Buy a fast food franchise?Become a shadow banker in China? A great read: http://www.bloomberg.com/news/2013-07-08/why-i-became-a-chin...The PIA factor comes to dominate these choices quite rapidly.Personally I just delegate management of half my assets to the nice folks over at Berkshire Hathaway.http://stonewellfunds.com/FiveYearRollingComparison.jpgThat's dead easy, except for the 2+ years full time I've spent analyzing them.Jim
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