Foreign bonds. Some experts are concerned that the Fed's new round of easing could depress the value of the dollar. To hedge against that possibility, experts suggest allocating a small portion of your fixed-income portfolio to foreign bonds. "International debt is a good hedge against dollar depreciation," Satovsky says. He recommends that investors allocate between 2.5 and 10 percent of their portfolio to international debt. Don Quigley, co-manager of the Artio Total Return Bond, says he favors bonds and currencies from countries like Canada and Australia because the outlook for their economies is better than that for the United States. He says both countries have stronger banking systems, and he believes both will be raising interest rates sooner than the United States.