former

If I’m a FI guy,
The uncertanties continue to cast the equities market providing unquantifiable downside risk. The risk reward does not justify investment in risky assets at this stage. With the possibility of a double dip recession, I would suggest you to park the money on short term govies. While this does not give you the upside it contains the downside. In addition, it’s liquid and you can rotate out relatively easily.
If I’m an equities guy,
Providing positive economic indicators taking the headline of most press recently mixed with some concern from the China and EU situations, heightened volatility is understandable. A situtation like where we are now, reminds me Jan/Feb 2009 right before the market had its best rally. However, what’s different this time is that 2009 was clearly a beta rally but 2010 is not. The proliferation of corporate suprises provides a good playground for true stock pickers. (insert your stock pitch)
My answer,
A close-to-zero rate provides limited upside for traditional fixed income securities and the uncertainties surround EU and China issues provide a difficult macro environment for traditional equities managers. However, this is a great opportunity for a global macro manager whom navigates 2008 well, or an distrssed credit even driven manager who can profit from the “wall of maturity” (depends on which strategy you want to push but I think global macro and distressed event driven are the best). Look at the beautiful charts, graphs and numbers….
That shows you which camp I’m in…