Analysts are doing a lot of worrying lately about all the bad things that could happen in the global economy, despite positive economic data and occasional market rallies.
Looking ahead to 2012, Deutsche Bank analysts Tom Joyce and Ram Nayak lay out 10 of the biggest worries. They tell you how to hedge for the worst case scenario.
So, TOP 10 risks:
- A Greek exit rom the euro
- Funding crises in Italy and Spain
- The U.S. gets hit with a downgrade or double-dip recession
- A hard landing in China
- France loses its AAA rating
- Aggressive and sustained deleveraging of European banks
- Commodity trade finance faces a liquidity crunch
- Safe haven assets disappear
- U.S. pension fund deficits continue to balloon
- BETTER than expected economic growth
As for the 10th risk it's said, that betting against the market always carries the risk of being surprised. In this case Europe stabilizes, the global economy grows, and risk asset prices exceed expectations.
