Thursday, March 20, 2014

Risk off investments

A major shock would increase the appeal of familiar “risk-off” investments. Investors would rush to Treasury bonds, high-quality corporate debt and the dollar as havens while dumping stocks and commodities. Some niche investments -- such as small luxury goods and medical office buildings -- also would look good.

There is a long list of unattractive investment areas in a “risk-off” environment that includes developed- as well as emerging-market stocks and bonds.