The global economy is extremely fragile today. Markets have not fully recovered from the financial crisis and have failed to adopt the necessary reforms to strengthen the system and right the wrongs of the past. Accordingly, the system remains highly vulnerable to further disruptions. That means volatility should rise, interest rates should go lower, the euro and dollar will continue to weaken against Asian currencies and gold, and the equity market (as well as its dark twin, the high yield bond market) should be approached with a great deal of caution. Our specific investment recommendations this month are as follows:
