Perfect Portfolios: Your Next Move in This Market
As the Dow posted its sixth straight loss on Wednesday — thanks to new worries out of Europe — we asked the pros what you should do now.
Investing pros have been nudging Americans to invest in foreign stocks for years, but now some are shifting their model portfolios back to favoring domestic ones. The reason: The U.S. economy is still growing (albeit slowly), while much of Europe is slipping into recession. Indeed, fresh reports this week that Greece and other euro-zone countries may derail the economic recovery has further jacked up the investor anxiety — and has pushed the Dow down the past six straight days. Meanwhile, even big emerging markets appear to be losing some steam. “China and Europe are both looking a little shaky,” says Sidney Blum, a financial planner at GreatLight Fee Only Advisors in Evanston, Ill, who expects U.S. markets will outpace foreign markets over the next year. More