"We're in for a multi-year period of pain," Ray Dalio of Bridgewater Associates tells Barron's. All major markets are down at least 40% this year as investors seem to have resigned themselves to some form of global recession. The debate has already shifted from the R word to the D word - will the global economy slip into depression?
Still, not all is bad. The good news, Barron's says, is that governments recognize the threat and are responding with unprecedented force, commodity prices are way down, and Buffett (BRK.A) is bullish. U.S. stocks, at 10x earnings and a 3% dividend yield, look reasonable. European stocks at 1.2x book value and a 6% dividend yield look even cheaper.
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