Where to Invest if Rates Rise—Searching for Alpha for December 2012
How we may change our portfolios if rates head higher, with market index performance for November 2012.
Sure, equities have had a nice run. But it may not be time to trim, yet.
Large Cap Logic
Investors will flock to U.S. large-cap companies, especially those with sound dividends, while small company stocks will remain relatively unloved.
Currencies can be an effective diversification tool. This currency strategy can be valuable, especially after the past two years in which almost every type of asset tended to go to a correlation of one.
A Steady Course
Even though stocks have dropped a bit lately, there are reasons to be a little more optimistic.
Inflation May be Inevitable...
Among the factors for determining future allocation decisions is the most likely direction for inflation. We have noticed a number of investment firms launching new funds to profit from the inevitable return of high prices.