Finance expert Mike Periu on why it may be wiser to play it safe with your investments in the short term.
Starting in July of this year, the major U.S. stock markets, as well as some foreign ones, started a rally that is now starting to fizzle out as stock prices decline across the U.S., Europe, Asia and Latin America. Leading economist Nouriel Roubini, who believes it’s about time this happened, says its better to play it safe with investments during the short-term, offering several reasons why the remainder of 2012 and all of 2013 will see continued price declines in equities. First, is the anemic economic growth in the U.S., Europe, Japan and in key emerging market economies like Brazil, Russia, India and China. Without strong economic growth, it’s difficult for companies to do well. Second, there remains too much uncertainty as to what the U.S. and Europe will do about their respective fiscal problems. Finally, many equity securities have increased significantly in price during this rally, meaning that the stocks are “priced for perfect execution” something that we know seldom happens.
Learn more about Mike Periu
Mike works with small businesses to teach them about finance and management. He started Proximo, LLC, a company that offers small business education and training services focused on finance and technology.
Periu also writes for OpenForum, Yahoo! Finanzas the Huffington Post contributor.
Mike went to Georgetown University where he studied Finance and International Business. He also serves on the Board of the Council for Economic Education and was a Fellow at the Kauffman Foundation.
