Many U.S. investors are questioning whether the U.S. is sliding back into another recession. In short, the answer is probably not. Most of my clients and readers know that I try not to rehash topics that other, more talented writers have already covered. James Swanson, CFA, the market strategist at MFS, has written a very good, brief analysis of the current situation and concludes that while a return to recession is more of a concern than in the past, it is still more likely that we are in a prolonged period of painfully slow growth. I urge you to read his article:
I agree with Mr. Swanson’s view on the economic picture here in the U.S. and we now see a much better value proposition, particularly in larger cap U.S. Equities, following the recent correction. We are redeploying some of the funds that we withdrew from stocks in the second half of 2010. Now is an excellent time to take a look at your portfolio(s) and sit down with your advisor and rebalance so you are sure that you have an exposure to stocks appropriate for your risk tolerance.
The above commentary is the opinion of the author and should not be construed as investment or tax advice. Always consult a qualified investment and/or tax advisor before investing or changing investments.