The world's a mess - buy global equities
19 March 2009 - Karl Leinberger
The worlds financial system seems to be unravelling. Cedit markets are paralysed. The decline in stock markets and house prices has destroyed US$9 trillion in the wealth of the United States alone. That translates to 60% of US gross domestic product. In times like this the temptation to sell risk assets and sit in cash is immense. Many are saying it's not the time to be brave and this is the point in the cycle where you should be more concerned about preserving capital than making returrns.