2012 Investment Outlook

The big picture

Global markets will take a back seat to U.S.

For U.S. equity investors, the next 12 months may be all about staying home.

With rates stalled and uncertainty a given, investors cling to safety

While they wait for interest rates to rise and a chance to reinvest for greater yield, advisers remain parked in short-duration, high-quality fixed-income instruments.

For munis, another bright year seen after surprisingly strong 2011

What a difference a year makes. Twelve months ago, banking analyst Meredith Whitney predicted that 2011 would bring “hundreds of billions of dollars” of municipal bond defaults due to intense fiscal stress on states and local governments.

Volatility, low interest rates likely to boost alternatives despite lag

Despite the generally dismal performance of alternative investment funds, investors continued to pour money into them in 2011.