Where to Invest While Markets Remain ‘Risk-On’
This article is for subscribers only.
Jan. 31 (Bloomberg) -- In today’s markets, investors’ zealfor yield and disregard for risk favors the junkiest of thejunk.
This “risk on” environment must be incorporated in anyinvestment strategy. I remain cautious, nonetheless, because ofwhat I call the grand disconnect between investors’ focus on theimmense liquidity created by central banks and weak andweakening global economies. When this disconnection becomesunsustainable, probably after a significant shock, my strategywill shift to “risk off,” as I will discuss in tomorrow’scolumn.