I’m sceptical of rival asset classes such as Bitcoin, gold and cash, which lack their staying power, even though they have their own advantages.
I might even have made a billion or two if I had bought the cryptocurrency when it was trading at just a few cents.
Plenty of online fanboys claiming the Bitcoin price will hit $1m one day, but I can’t see that happening.
Gold works best as a shock absorber in times of trouble, but I wouldn’t invest more than 5% of my portfolio in it, if that.
Financial advisers say you should keep up to six months of income in cash on easy access, in case of emergencies.
I’d build my portfolio around a FTSE 100 tracker and FTSE 250 tracker, to get a good spread of UK shares at minimal cost.
I’d also get some international exposure, investing in investment trusts or exchange traded funds targeting the US, Europe and emerging markets.
I would start by investing in FTSE 100 dividend-paying blue-chips, targeting those trading on low valuations and offering high yields.
Then I would start scanning the FTSE 250, to add some younger, whizzier stocks to my portfolio.
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