Hedging mREIT Risks With Short-Term Bonds
By John Gerard Lewis:First, the giddy optimism:Reuters reports that a survey of Wall Street strategists believes the S&P 500 will rise 6% in 2012. Another survey of 10 investment firms showed an anticipated gain of 10% by year-end. And forecasters at Citigroup and Ned Davis Research are suggesting the possibility of a new bull market within a year or two.That's great. We hope all of this happens. But if it does, it will have overcome headwinds that aren't abating much, including:
- U.S. economic growth expectations of just 2.7%, according to a survey of economists by The Wall Street Journal.
- A stubbornly weak job market, notwithstanding recent, but ever so slight, improvement.
- A languishing housing market, dragged down by obstinate political resistance to processing foreclosures that would readily locate price equilibrium.
- Limited U.S. exports caused by slowing global growth.
So what is it going to be? Can the stock market overcome theseComplete Story »
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