As I wrote earlier I had initially decided to divide my capital with:
30% being the 'safety bucket' and
70% being the 'growth bucket'
And then further divide my growth bucket into 50% blue chip and 20% speculation.
To be truly safe it was suggested to me that you should only use the safety bucket for things like term deposits, bonds etc. But I am seriously starting to wonder, is a term deposit ever really a 'safe' investment? Just barely beating the rate of inflation because the stock market is 'unsafe'?
I wonder if it is just as risky NOT to invest the 'safety bucket' in the stock market across a few markets/sectors? So perhaps a more intelligent asset allocation for me would be:
80% Blue Chip
or perhaps even:
70% Blue Chip
In my current situation this would mean I would have $48,000 for speculation which would give me a significantly better starting position than the $22,400 I would have had otherwise, and frankly I would feel just as safe with my 70% spread across various blue chip sectors.
I have read a previous post about how everyone allocates their assets so there is no need for everyone to repeat how they do it, I was just curious what people consider to be a 'safe' investment, keeping in mind I realise that no investment is ever truly safe....but what do you consider to be a long-term solid investment?