"Be Warned! Be Prepared! And Do What Exactly?"
Great topic OP! I've spent hundreds of hours mulling this over and still aren't sure!
In the middle of last year I decided on the following strategy and so far I've stuck with it although had many wavering moments:
-- 1/3 in euros in an on-call account (I live in Holland hence the reason all my cash is in euros).
-- 1/3 went to pay off a small house we own in Italy (it's our place to escape to if the s*** really hits the fan. I rent my main residence).
-- 1/3 is in shares spread over the following sectors: oil, gold, uranium, agriculture.
Pleased with the cash and paying off house decisions. The shares have taken a battering recently even though gold and oil are at record highs. I reckon my shares are going to face a lot more pain to come in the next few months but because I'm mostly invested in small caps (in New Zealand where I'm from) it's very hard to sell any volume when the market's like this.