The best way for a small investor to diversify is via ETFs.
All investment are personal. Each have different risk profile and yield expectation. An aggressive investor expect high yield must also have to take high risk. But more importantly, one has to be a dynamic investor.
A dynamic investor must be an investor that reconfigure its portfolio on and off to align with the market trend. However, each investment must have a horizon of 2-3 years holding period, however, it can be replaced by another investment if the new investment is expected to have higher yield than the existing ones.
ETF by countries
ETF by sectors
ETF by type of assets
ETF by commodities
ETF by categories
ETF on currencies
ETF on market capitalisation
ETF on high dividend yield stocks
Inverse ETFs on all the above
MyView
A balance portfolio will look something like this
Global Core
Core Equity
100 S&P Global 100 10%
PID Int'l Div Achievers 5%
DGS Emerging Small Cap 5%
Commodity
SLV Silver 5%
GLD Gold 5%
Country/Sector Overweights
GXF Nordic 10%
JFC Jardine China 5%
EWG Germany 5%EWY
South Korea 5%EWS
Singapore 5%
Fixed Income/Currency
TLT 20 yr Treasury 20%
FXF Swiss Franc 5%
Cash/Inverse
Cash 15%
SH
EFZ
EUM 0%
So one can actually form a portfolio of "Globe Core" for an amount from USD20,000 to USD100,000. Advisable if the porfolio consist of 12 stocks/ETFs period.
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