David Rosenberg’s former Merrill Lynch colleague, Richard Bernstein, is a bit more bullish on equity markets and the economy in general and offers a bit of a different perspective on how to approach 2012 (see Rosenberg’s outlook here). You can find his entire rationale and strategy here.
Within this backdrop, some of our favorite investment themes for 2012 include (in no particular order):
- Overweight of the US equity market, and underweight of emerging markets.
- Overweight of smaller US stocks, with an eye for smaller, domestically-oriented financials.
- Underweight commodities and gold for US dollar investors. Overweight for EM currency investors.
- Positions in treasuries to maintain portfolio diversification.
- Increasingly avoid alternative assets.