But nowadays the market volatility, investors have been caught by the tail, and risk management is front and center. Spread uncertainty and unrest in Athens with Manhattan's Zuccotti Park, Bank of America Merrill Lynch analysts to assess the risk that some potential tail can grow in 2012, and investors take advantage of them, how time thought.
Merrill Lynch analysts, for the base case is a relatively optimistic scenario. Here, the global economy slows but avoids recession, the economic troubles post respectable growth emerging markets and China and the U.S. through the clutter, Kate Moore, a Merrill global strategist who recently contributed to the research report .
"The prevailing notion that companies are struggling and we're going to grind to a halt," she said. "We do not see the world."
While the global economy will show little prospect of development, some companies will weather the storm, Moore noted. In that environment, high quality, income producing stocks will be distinguished. Moore said: "There are certainly companies that will do well to take advantage of the opportunity."
Generally, the tail risk is 1-10 a chance of occurring, but if and when it does impact on the investment portfolio may be enough, Merrill report said. Here are seven scenarios, analysts said investors could see in 2012, and you can do about them
1. The Fed increased interest rates
The idea is that the U.S. economy strong enough to make the Federal Reserve in 2012 as far-fetched to most observers, the attacks raise rates, if not ridiculous.
"It is a good thing to think outside the box, but in outer space," says Ed Yardeni, president of market strategy firm Yardeni Research.
Merrill strategists do not disagree - in fact, our models indicate that the U.S. economy strong enough for the third quarter of 2014 will not support a Fed rate increase. But it's not a rosy picture is out of question.
"It is unlikely that any one event," Moore said. "Surprising and strong growth in the economy is much larger than we would expect the rest of the market."
America's election expenses catalyst for economic development and cooperation in Washington-on-year deficit, and low mortgage rates are buoying sale will include faster and banking sector.
Merrill Lynch analysts, for the base case is a relatively optimistic scenario. Here, the global economy slows but avoids recession, the economic troubles post respectable growth emerging markets and China and the U.S. through the clutter, Kate Moore, a Merrill global strategist who recently contributed to the research report .
"The prevailing notion that companies are struggling and we're going to grind to a halt," she said. "We do not see the world."
While the global economy will show little prospect of development, some companies will weather the storm, Moore noted. In that environment, high quality, income producing stocks will be distinguished. Moore said: "There are certainly companies that will do well to take advantage of the opportunity."
Generally, the tail risk is 1-10 a chance of occurring, but if and when it does impact on the investment portfolio may be enough, Merrill report said. Here are seven scenarios, analysts said investors could see in 2012, and you can do about them
1. The Fed increased interest rates
The idea is that the U.S. economy strong enough to make the Federal Reserve in 2012 as far-fetched to most observers, the attacks raise rates, if not ridiculous.
"It is a good thing to think outside the box, but in outer space," says Ed Yardeni, president of market strategy firm Yardeni Research.
Merrill strategists do not disagree - in fact, our models indicate that the U.S. economy strong enough for the third quarter of 2014 will not support a Fed rate increase. But it's not a rosy picture is out of question.
"It is unlikely that any one event," Moore said. "Surprising and strong growth in the economy is much larger than we would expect the rest of the market."
America's election expenses catalyst for economic development and cooperation in Washington-on-y
