Two Ways To Play: Big Brains Predict More Pain
Strengthen your portfolio in good times and bad.
Scholes, who won the Nobel prize in Economics in 1997, said in an interview in Germany, "There will be a global recession… [with] still a tremendous amount of deleveraging still necessary." Stiglitz , who won the award in 2001, said that the world economy would continue to underperform below its potential for some time and that this would result in a "social loss" through weaker unemployment.
Earlier this morning, analysts at Goldman Sachs, led by London-based Binit Patel, wrote in a report that the U.S., Japan, the 15-nation euro area and the U.K. are "either in recession or face significant recession risks in the months ahead." These countries account for half of the world's economy.
For more on the economy, see Professor Kevin Depew's Five Things You Need To Know: Bernanke's Jackson Hole Gets Deeper.
From the Bull Pen: We've talked about the broader effects of the credit crisis for some time now, but ugly stocks can still have their moments. Lehman (LEH) with tight sell-stops may be an option.
From the Bear Cave: Lowe's (LOW) is looking more like a downside possibility. Bears can fade (read: sell) the stock into the $26 level.
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