For recapitulation their are several asset classes that one can invest their money in. I would leave out the most difficult and complex which are not worthy to invest into.
4. Fixed deposits or certificate of deposit
5. Precious metals
The first decision to take is how much risk you can tolerate. You can learn about risk and risk tolerance here. Because some of those assets can vary widely in value, can crash and be wiped out, then your tolerance such risks and changes in the value of your portfolio will determine how much you allocate in each class.
The following list the asset class from the most risky to the most safe.
stocks, precious metals, bonds, cash, certificate of deposits
However the riskier an asset class the more the return associated with it. So those that want to have high return will have to increase the percentage of risky assets in their portfolio.
Hence there are several ways to allocate assets in a portfolio based on the tolerance of risk and the return required.
High risk, high return
100 % stocks and high yield bonds
medium risk, medium return
50 % stocks, 25 % cds, 25 % bonds
low risk, low return
25 % stocks, 25 % cds, 50 % bonds
75 % gold and silver, 25 % bonds indexed with inflation
100 % gold and silver
I choose the medium risk and medium return portfolio. I think that it can cater for all types of catastrophe in the market.
The choice is yours guys.