Europe, in particular, is garnering greater interest as Continental companies embrace corporate restructuring and mergers in a bid for world-class efficiency. Asia looks enticing, too, especially with the entry of China into the World Trade Organization. That could be as big a boost for the regional economy as it is for China itself. The U.S. bond market could also offer nifty returns. Corporate bonds offer even higher yields, with little incremental credit risk.
Investors face plenty of uncertainty.
The Fed may have come down too hard on the economy. The recoveries in Asia and Latin America are still fragile. The McGraw-Hill Companies Inc. All rights reserved.