The basis:
- There are 4 basic scenarios: prosperity, inflation, recession or deflation. You would need assets that do well in each of these to keep a good balance.
- In Prosperity - stocks, to provide a strong return. Bonds will do well as well.
- In Inflation - Gold is the choice (not the only possibility though).
- In Recession - Cash or cash equivalents do well, due to low liquidity in recessions.
- In deflation - Bonds will do great.
very simple and easy to understand, you have given us a simple but very useful presentation. That is your character who is good at providing information about both micro and macro economic management. Then from the 4 methods, I am sure that an efficient and optimal portfolio management will be created.