Cyphire, I too am looking to ensure a source of future revenue.
During the last 1 1/2 years, I’ve used money market and short bond funds (mostly munis) to build a diversified portfolio of about 40 foreign and domestic dividend-paying stocks across a variety of industries. My average dividend yield is about 4%. I don’t know if the dividend income will tank with a recession, or lag inflation over the long haul, but I felt it was more likely to keep up with inflation or incomes over the very long haul than investing in munis.
I don’t see a lot of good buys right now. Since January, I’ve been planning to use JPY/USD futures to buy yen. It seems the yen is a good long-term store of value, so I’m prepared to spend some carry cost money to diversify into it. If the dollar tanks because of inflation, I’ll be hedged by my yen holdings. If the dollar holds up, then my stocks are probably doing well to offset the yen carry costs.
If I were in your shoes, I wouldn’t be excited about buying a lot of stocks or other assets at today’s very high prices. But I’d buy a few. And I’d buy a bunch of undervalued currencies (measured by PPP and a few other measures) until I saw a better buying opportunity elsewhere in the future.
