Anatomy of a bear's portfolio
Cash-flow-producing oil and gas - 20%
Why: Domestic oil and gas offers the best chance for long-term income and growth. Over the next 10 years, we see far more upside in this sector than in bonds or dividend-paying stocks.
Vehicle: Although we have found the best opportunities in the private markets, we recognize that an attractive option in the public markets is a basket of high-quality master limited partnerships spread out across the royalty and infrastructure sectors. We prefer these cash-flow-type investments to integrated energy companies or energy services stocks.