Re: How is our Portfolio?
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What makes you think either you or OP have any better insight into the best sectors of the future, than is already reflected in current market prices? Academic studies show that chasing "hot funds" or "hot sectors" almost always leads to lousy performance as they typically do much worse going forward.
In the case of OP's intl fund, it's a reasonable hedge against the falling dollar. The beauty of a passive portfolio built around index funds is that OP will never trail the markets. He won't beat them either, but not trailing means he'll beat 95% of actively managed funds over time.
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i didn't say i had better insight, but you strategy doesn't have to be chasing hot funds or hot sectors. it just requires a little foresight. like you mentioned, your positions can be simple hedges against a lot of different factors, rising oil prices, utilities, inflation, real estate appreciation. if all else fails, you can even consult any number of financial advisors (the poo-bahs in this forum certainly have more faith in them than in fund managers).
never trailing the market is great, certainly some of your portfolio should be in that. based on the OP's retirement allocation, i suggest that upto 20% can be in a position that can potentially outperform the market in the next 6-24 months.
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