“….Jakobsen notes that investors are ushering in 2013 with some of the highest expectations for the stock market since 1999, with not a single Wall Street house expecting the S&P 500 SPX 1.69% to take a hit this year. And that’s despite a number of factors that could get markets upset, including tax hikes, austerity and a general slowdown in world growth.
“This means the main return needs to come from multiple expansion, which we find hard to imagine considering the tail-risks,” such as the debt ceiling, and Italian and German elections, says Jakobsen. He suggests investors cut back on their equities exposure and go heavier on Treasury Inflation Protected Securities and commodities…”
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