ING Investment Management forecasts that stock markets will rise between 8% and 12% in 2011, thanks to a low-inflation, low-interest environment supported by the Fed, despite weak GDP growth. And for those looking for to increase their investment yields, they have a few suggestions.
Yields on emerging-market debt funds and exchange-traded funds are certainly enticing these days, especially compared to U.S. Treasurys. Also attractive are the added benefits of portfolio diversification and currency appreciation. But the risks can't be overlooked.