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How to build a "Stockless" Portfolio :):):) , LIP, (Catch22)
Stockless portfolio that provide stock like returns does not mean a riskless portfolio and in fact the suggested portfolio could be riskier than a better diversified portfolio that includes stocks.
If you want stock like returns you will expose yourself to stock like risks. If an instrument was to provide higher return and less risk, the market participants would equalize the future risk-return prospects of the portfolios by selling other assets buying the new instrument. In this process, the new instrument future expected return would be diminished and the older one's future return would be enhanced.
Rarely and the free lunch is take out quickly before the retail investor gets to it. The important thing for retail investors is the be able to get their fair share of long term returns less expenses.
Comments
If you want stock like returns you will expose yourself to stock like risks. If an instrument was to provide higher return and less risk, the market participants would equalize the future risk-return prospects of the portfolios by selling other assets buying the new instrument. In this process, the new instrument future expected return would be diminished and the older one's future return would be enhanced.