Equity Losses Still Likely

Additionally, I sense growing unease in the fixed income sector. With the 10-year bonds at 1.84%, Treasury yields may not have much further to fall. In that case, it is fair to question the ability of a fixed income allocation to generate diversification within a traditional stock-bond framework. I anticipate that we may be making significant changes to our asset allocation in response to these new challenges.

Europe has now gained the spotlight as a major reason for investor angst – and that’s where I’m heading. I plan to blog several times during my trip next week to report on how the situation in the E.U. is effecting investor confidence in that region.  Stay tuned.