The Best Investment Mix for Today's Crazy Marketshttp://www.fool.com/investing/etf/2011/07/28/the-best-investment-mix-for-todays-crazy-markets.aspx Dan Caplinger
July 28, 2011
There's nothing the financial markets hate more than uncertainty, and right now, it seems like nothing is certain. With the once-sacrosanct creditworthiness of the U.S. in severe jeopardy, investors are running around looking for a safe haven -- and coming up mostly empty.
At times like this, it's important to take a step back and try to think about things from a long-term perspective. Although the news of the day can have lasting effects on investing for years to come, you also need to understand that the crisis of the moment quickly fades into the background once it's resolved.
To help you do that, looking at your overall asset allocation right now makes a lot of sense. And to give you some insight into whether your current asset allocation will get the job done, let's take a look at what one respected longtime portfolio manager and finance author is doing right now.
Turning to the Ivy League
One thing that Faber discovered in his research of college endowment investing is that individual investors can't really expect to mimic the portfolios that endowments put together. That's largely because as accredited investors, endowments have access to top private-equity investments and hedge funds that ordinary investors can't buy.
Perhaps because of that, Faber put together his Cambria Global Tactical ETF (NYSE: GTAA ) late last year. With a very reasonable expense ratio of less than 1%, the actively managed ETF has already gathered almost $200 million in assets under management. More importantly, you don't have to be anybody special to buy shares of the ETF; they trade just like any other exchange-traded fund.
Bracing for whatever comes
So what does Faber think the ideal mix is right now? Here's what his investors are getting for their money right now: