My friend can sleep better owning China, Turkey, Russia, and E.Europe

My friend responded that he wants to buy a condo in a few years and doesn't want to see his portfolio get rocked by volatile stocks so this is what I perceive as 10 conservative investments.
And how I responded to him.

Dear ____ (I actually didn't use dear but since I'm not using his name, I felt obligated to make it look more letter-like)

"You know in another era saying safe investment and Russia, China, E Europe in the same breadth would be heresy.

If you decide to sell, I would consider 10 stocks or funds, 1000 each.
1) Infrastructure (global growth)

2) Precious minerals (weak dollar, inflation)

3) Energy (emerging mrkt demand outpacing supply)

4) Health Care (aging of population)

5) India ETF (strong democratic tradition)

6) Japan (undervalued mrkt--and play on China since that will be Japan's biggest mrkt) or Korea or Taiwan (all three are plays on china and respect shareholder rights)

7) Growth oriented fund that is not related to housing or financials

8) Defense (growing cold war rhetoric between US and Russia, and endless "war on terrorism")

9) Defensive stocks-ie. Consumer durables ie you always need even in recessions

10) the Dines Newsletter (he recommends conservative stocks as well), or Dow Theory Letter (recommends more diversified stocks but is bent on owning gold stocks. Was quoted in Barrons this week)--two non partial market observers."