Based on these core principles (never seen anyone talking about them): hold stocks and trade bonds. Here is how it works: 1. You hold stocks with dividend. Aim is to use stocks to protect against inflation, and beat the inflation bonds with dividend yield. You have additional capital appreciation as a bonus. 2. Use bonds with aim to make capital gains, and get paid during your holding period. Simple, and should beat a lot of dummies there who follow the opposite of what is above. It is also easy to implement and to follow. You are a lower of portfolio rebalancing, and you are done. Acknowledgments: idea first revealed to financialtraders blog members. Reference cannot be added to make life easy for mods. Bonus: for the pros you can add a layer of option premium writing, exploiting value of collateral. You can also use bonds to enhanced return by doing arbs outside of financial markets such as insurance, and using portfolio as asset to build on. Have you ever come across something like this?