I have my mad money.

We started talking about how investing is a way to fight against inflation. The idea is that if you have returns that outpace inflation, it is "safer" than just keeping cash in an account. But there's also TIPS, treasury bonds that track inflation, which seems like the ultimate defensive investment. Something that meets inflation has a consistent adjusted value, whereas cash loses value over time if there is inflation. 

Last year, Random Roger wrote about the Floor Leverage Rule, and it sounds interesting. Basically the idea is that you devote a small portion of your portfolio (say 15%) to something that has an exceptionally high risk and potential high return. Yes, you may lose your hat, but it's only a small hat, like a beret or a beanie. And think of the potential gains. Even though the rest of our portfolio isn't just a bunch of Treasury notes, we do have a pretty conservative group of investments. It might be a way to ease us into taking a little more risk. With the next buy let's find something volatile, something extreme. 

We found a nice list of some discretionary stocks at TheGlobeAndMail.com that might be worth looking into next week. The Motley Fool seems to have good things to say about Lithia Motors, so that's probably where we start. 

Profit.