My theme for this year is that stocks are a risky asset class once this MOJO run ends.
The trends, technicals and breadth all continue to show signs of potential further gains in many risky asset classes.
By contrast, the Japanese yen gained against the US dollar because many investors see it as a less risky asset.
Mr. Cabiedes said that paradoxically venture, often seen as a highly risky asset class, has become a relatively more attractive investment.
We continue to remain bullish on risky asset classes until the charts tell us differently, which can happen at any time.
When the perceived risk of an asset class is low, the expected return is also low relative to more risky asset classes.
European sovereign debt is THE RISKY ASSET CLASS in global markets today.
The number of years it could take for a risky asset class to outperform T-notes or another less risky market will astound you.
And they have widened the range of investors who can get involved in risky asset classes, such as subprime mortgages and junk bonds.
Investors shifted money away from safe haven assets and poured into equities and other risky asset classes on the expectation of less geopolitical risks in the markets.
Our asset class forecast relies on the simple belief that market participants, as a group, will invest in risky asset classes when the return expectation is high enough.
FORBES: The Portfolio Solutions 30-Year Market Forecast for 2012
These developers are engaged in an extremely risky asset class.
The following paragraphs highlight the three longest periods it has taken one risky asset class to catch up to a second asset class, once the first asset class started to underperform.
Currently, the charts are generally telling a positive story about the stock market and risky asset classes in general, although the Japan nuclear incidents are very much impacting that market as well as some others.
The report also said that the smaller banks were offering returns significantly higher than the major banks, "which may reflect the small banks' more risky asset-allocation strategies for higher yields" to compete for sales of wealth-management products.
No matter how much Barack Obama huffs and puffs, a ratings agency's job is to rate bonds, including government ones, and to speak out when it thinks the least risky asset in the world has become riskier.
Our strategy at Hanlon Investment Management is to attempt to minimize downside risk by exiting risk asset classes, such as equities, during periods of uncertainty, getting invested in more conservative asset classes, such as money markets and short-term bonds, and re-entering into risky asset classes when we identify them as attractive, when the trend is our friend and positive!
FORBES: Watch Out: 2011 Looks A Lot Like The Market Top In 2007
Research by Nomura shows that gold has the capacity to act both as a risky and a safe-haven asset.
FORBES: How High Can Gold Go? Just Look At Oil, Equities, And Money Supply
When stocks are overvalued fundamentally and overbought technically investors should be reducing allocations to this asset class on strength to risky levels.
In Mr. Zimmerman's view, gold is an investment that likely will benefit if inflation ever picks up, or if financial markets turn unhealthy as investors chase stocks and risky bonds, something generally called "asset inflation, " as seen in the U.S. housing bubble.
Banking crises, usually associated with asset-price bubbles (because that is where the risky lending goes), nearly always follow this pattern.
And today the FT announces that Deutsche Bank will undertake a major restructuring, reducing risky business while growing safer, if more boring areas such as asset management and transaction banking.
As for risky markets, there is some uncertainty over a longer term, when most asset pricing models use the US rates as the risk free rates.
It all gets back to asset risk. if solar power, for example, were much less risky then we would see better-capitalized power producers entering the market.
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