risk

With the recession over -- in a sense, anyway -- many CEOs are happy to be standing. And after three tumultuous years, some are even cautiously optimistic. But 2011 is sure to present a whole new set of obstacles for corporate chiefs to confront -- and conquer.

If the extension of the Bush tax cuts triggers a market rally, as many expect, investors will likely rush in. But caution is advised: High prices can also mean high risk. Here are some tips from Alan Lancz, director of research at LanczGlobal.com, on how investors can avoid getting burned.

Buy-and-hold investing has been a loss for the last decade, and low-risk options will never get you the returns you'll need to retire in style. So how can you find real profits in the market? As venture capitalist and business guru Peter Cohen explains, the answer may be in anticipating surprises.

Investors hungry for higher yields are flocking to the credit markets, putting junk-bond issuance on a record-setting pace. And lenders are loosening credit standards, while companies take on debt just because it's cheap. Sounds like a familiar scenario.

Regulators may outline new rules to target so-called window dressing, a practice that some banks use to temporarily reduce their debt levels before reporting their finances. The SEC is scheduled to raise the matter at a meeting on Friday, then issue proposals for public comment, The Wall Street...

IPOs increased last quarter to their best pace since the financial crisis began, and the pipeline is filled with highly anticipated new offerings. It's a sign that markets are more willing to finance long-term growth, and that investors are again willing to take risks for higher returns.

On Tuesday, the FDA will convene a panel of experts to discuss GlaxoSmithKline's type II diabetes drug Avandia. Once a blockbuster, sales of the drug have dropped by more than half since studies suggested it significantly increases risk for serious heart problems.

In the late '80s and early '90, more than 1,000 savings & loans failed in a financial crisis that cost the government $220 billion to resolve. By contrast, it looks like TARP will only cost the government $105 billion. So is the current financial crisis only half as bad? Not bloody likely.

One of the biggest risks to the world's financial health is the $1.2 quadrillion derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy.

If Dow 10,000 really is a key psychological level, then traders best call their shrinks. The major averages, already on a four-week losing streak, face anxiety over the Euroland debt debacles and waning earnings momentum. In other words, brace yourself for Dow 9,000 and change.