Betting on a Long, Hard Slog
If you formed your opinions based solely on the headlines in the financial press, you'd think that there are only two possible scenarios in the current environment. The first possibility is that equities are extremely undervalued and headed for a tremendous surge, and U.S. jobs engine is now firing on all cylinders and pushing the economy higher. The other is that the U.S. is on the brink of a double-dip recession that's going to send prices for risky assets tumbling -- and the mounting debt burdens around the globe and crises in Europe are going to swallow up global equity markets. Seemingly, there is no in-between.
It's easy to come up with a long list of actionable investment ideas for either of those scenarios. There are a number of high-volatility products that should perform well if risk appetite remains strong and numerous safe havens, and bear ETFs that should be expected to post solid gains if the U.S. head back into recession. What's a bit more challenging is picking out asset classes that can deliver superior risk adjusted returns if a more likely scenario plays out -- a long, slow road to recovery, marked by steady growth in jobs and gross domestic product but with ongoing anxiety over the numerous risks dotting the landscape....441 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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