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INVESTMENT    REASON                             EXAMPLES



COMMODITY     Oil and gold prices rise during    Oppenheimer Real Asset or
FUNDS         wartime. Good diversifiers and     Vanguard Precious Metals
              inflation hedges.                  funds



CONSUMER      They provide things people need    Food and personal-care
PRODUCT       and must purchase.                 companies such as Gillette,
STOCKS                                           Heinz, Kellogg, Kraft Foods,
                                                 or Consumer Staples Select
                                                 Sector SPDR



DEFENSE       Terrorist attack will increase     Lockheed Martin, Northrop
STOCKS        defense spending.                  Grumman



DRUG          Drug-company earnings are not      Merck, Pfizer; Fidelity
STOCKS        tied to the economy's ups and      Select Health Care or
              downs.                             Vanguard Health Care
                                                 funds; Pharmaceutical
                                                 HOLDRS



HEDGE-TYPE    Low correlation with the broader   Leuthold Core Fund, Calamos
FUNDS         market.                            Market Neutral Fund,
                                                 Enterprise Mergers &
                                                 Acquisitions



MONEY         Cash is king during periods of     Vanguard Prime Money Market
MARKET        economic stress.                   Fund
FUNDS



REAL ESTATE   REITs are good diversifiers and    Vornado Realty Trust,
INVESTMENT    pay high dividends. Office rents   Columbia Real Estate Equity
TRUSTS        in New York are likely to rise.    Fund, or iShares Dow Jones
                                                 U.S. Real Estate Index Fund



SHORT TERM    Relatively safe and higher         U.S. Treasuries and high-
BONDS         yielding than money-market         grade corporate bonds with
              instruments.                       maturities of less than three
                                                 years
INFLATION-    Good diversifier and inflation     I-Bonds and TIIS, also
PROTECTED     hedge.                             Vanguard Inflation Protected
SECURITIES                                       Securities Fund