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Alternative Market Briefing

Opportunities in real estate offer a silver lining to otherwise uncertain markets

Thursday, September 06, 2012

Bailey McCann, Opalesque New York:

Investors are facing a unique dilemma according to Giles Keating, head of research for private banking and asset management at Credit Suisse. If current global macroeconomic situations such as the European and US debt crises are resolved, assets will be considered cheap. On the other hand, if these situations worsen or new ones spring up, asset values may decrease further. The overall uncertainty of this situation is making investors cautious and is likely keeping some money on the sidelines.

Keating was recently interviewed by Sona Blessing for Opalesque Radio, where he discussed many of these issues in detail.

"Every generation feels like the current level of political risk is greater than the last," explains Keating. He notes that if investors were to step back and look over points in history they are likely to find times in which the level of political risk was greater than it is now. "Politics is about conflict," he says.

Within this context, the first principles of investing still apply – maintain a diversified portfolio, hedge against current and potential future risk. This is also true for assets such as gold which have been viewed as bastions of safety.

"I think the levels in gold are high enough now that investors should have a small part of their portfolio in gold. But I think we could see a correction in the......................

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