BusinessWeek magazine’s Midyear Investment Guide is worth checking out. It mainly talks about adding other asset classes to a typical stock and bond portfolio to reduce overall volatility and boost returns. Some of the asset classes mentioned:

  • Foreign stocks: EAFE and Emerging market equities have a place in every portfolio.

  • Real Estate through REITs

  • Commodities: An ETF that tracks a broad range of commodities would be a welcome addition. Gold ETFs are already available and silver and oil ETFs are in the works.

  • Private Equity: The guide mentions two closed-end funds (ALD and ACAS) that invest primarily in private firms sounds intriguing.

  • Inflation-protected bonds.