COMING SOON: Strategic Value Investment. Where to park your funds in these turbulent times to have sustainable returns. By Shan Saeed. GLOBAL ECONOMIC OUTLOOK FOR 2014. Germany, China, Russia, Brazil, Norway would be calling the shot for currency hegemony or monetary leadership. Markets are ruthless and manipulated by the big players. Savvy investors are looking for avenues to play safe and have sustainable returns on real asset. In these turbulent times, investors are looking to invest those real assets which are backed with solid fundamentals and long term value growth. Nobel prize-winning economist Robert Shiller said he is still investing in the stock market despite warning recently of bubble-like conditions that he viewed as especially worrisome in U.S. stocks. Yale economist demonstrated that even distinguished experts can be uncertain when it comes to what direction equities are headed at a given time. On the one hand, he said that his proprietary long-term valuation metric for stock markets, which measures earnings based on inflation-adjusted results over 10 years, stands at 25 — high, but still considerably below the record of 46 that it hit in 2000. Shiller noted that after the U.S. markets crash and its aftermath in the 1930s, stocks did not get back to break even, in real dollar terms, until the 1960s. He is not as optimistic based on history. Theres a potential for another collapse, definitely. Last month, Shiller warned in an interview with Germanys Der Spiegel magazine that an investment bubble could be forming.
Posted on: Mon, 27 Jan 2014 03:30:58 +0000
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