The bond market is often touted as the safest place to stash your cash, but Rick Ferri, founder of Portfolio Solutions, says that's not at all the case right now. In fact, he argues that exposure to the entire U.S. stock market is the best bet.
"I don't see stocks being any more risky than bonds over the next 10 years," says Ferri, who is also the author of "The ETF Book." "Sure we'll get the daily and monthly volatility, but if you can stick it out and sleep through those, you'll be much happier with the upside."
Ferri recommends the ultra-cheap Vanguard Total Stock Market exchange-traded fund, which invests in more than 3,000 domestic stocks. It's up almost 7% this year, outpacing the S&P 500's 5% rise, with top holdings that include household names like Exxon Mobil, Apple, Microsoft, Procter & Gamble, and AT&T.
"The key is to go to the market that nobody wants to invest in," Ferri says. "The United States will lead the globe out of the recession, not China. Corporate revenues are building, and the idea of a double-dip recession will be dead after earnings season. Then the stock market won't fall back."
NEXT: Global stocks fund
