You make an excellent point. There are problems in defining an ideal ‘alternate investment’ to withstand a crash:

1. Equity markets are subject to massive covariance, or systemic risk. In other words, when the market crashes, the good goes down with the bad.

2. The trigger for the next crash is still hidden from view. If this ‘trigger’ is related to interest rates (like, protectionist legislation from a Democrat-controlled US Congress that brings down the trade deficit, cutting the flow of funds into the bond market), then rising interest rates will force bonds to fall along with equities.

My own inclination for an almost ’sure thing’ (besides death and taxes) would be to look towards inflation-resistant assets. This could be things like equity REITs, with highly-diversified portfolios of sound, conservative income-producing properties in the heartland of the US (away from a megapolis).

From what I’ve read, many were ruined in the Great Depression by investing in 1932 (‘at the bottom’). Who can tell how long a market will remain down? Successful investors, Ben Graham and David Dodd were players in those years and have left copious notes for posterity on how to muddle through.

It seems to me that survival is more likely to be found in focusing on solid, long-term income-producing assets, rather than assets that are valued in terms of expectations of selling to someone else.

I think it would be a great idea to talk a little about alternative investments.

Imagine the great depression, were there any stocks that overperform the market or other investments?Cash was the king or were the bonds???

How can we survive if we are seeing a long-cycle market top?

Thanks,