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Vishesh Kumar

Vishesh Kumar

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The economy appears to be heading into a rare, but oft-predicted, scenario of strong growth and low inflation called "Goldilocks." While it's been called before, experts might be right this time around.
It's easy to be pessimistic these days. Libya's civil war, surging oil prices and the disaster in Japan have combined forces to send financial markets tumbling. But the cold, hard facts about the economy paint a more optimistic picture.
Most Wall Street experts are far better equipped to analyze a corporate risk over a political threat. But today, it's political unrest in the Middle East and beyond that's driving world markets. So we asked Ian Bremmer, president of political risk consultancy The Eurasia Group, to break down the major developments and what investors should expect.
The moods that dictate underlying prices can quickly swing from one extreme to the other. Such swings often create opportunities for investors. For instance, the rush back to domestic markets is leaving opportunity on the table overseas again.
Beware of the constant metaphors used to frame the world economy as if it were a war or zero-sum competition. Investors should remember that economies cooperate as much as they compete on the world stage. The current U.S. manufacturing boom is a case study.
Recent market sell-offs may have been more about paranoia than about real risk. JPMorgan calculations indicate that the potential impact of rising oil prices on the economy may be less than most investors think. But the fear factor itself also can't be overlooked.
If you look past the calamitous Libyan mess, there's plenty of cause for optimism at home. And investors with a longer-term view of the markets should consider the ongoing uncertainty stemming from the Middle East as a potential entry point for buying stocks.
Despite all the worry over the impact of rising oil prices, recall that the U.S. is now a largely services-based economy. And observe that the rising wages that have led to real overall cost rises in decades past are nowhere to be found today. Exhibit A is in Wisconsin.

Covestor lets its users mirror the portfolios of other successful investors. And it lets investors who want to showcase their stock-picking prowess use the technology to build up a following -- and get compensated in the process. Covestor's Simon Veingard explains. [Video]
Goldman Sachs drew some undeserved ire when it recently pointed to proposed cuts in federal spending as a key near-term risk. While the proposed cuts are modest, they could still undermine the rebound at a critical time.

Market Movers

SymbolLastChange / %Volume

Most Actives

BAC
Bank of America Corp
8.08-0.11
-1.28%
184.54M
ALU
Alcatel-Lucent (ADR)
2.21+0.27
+13.66%
107.06M
F
Ford
12.45-0.25
-1.93%
35.97M
GE
General Electric Company
18.84-0.30
-1.54%
33.77M

% Gainers

CIE
Cobalt International Energy
31.71 +7.81
+32.68%
15.75M
LNKD
LinkedIn Corp.
89.60 +13.21
+17.29%
10.41M
ALU
Alcatel-Lucent (ADR)
2.21 +0.27
+13.66%
107.06M
WNS
WNS (Holdings) Limited (ADR)
10.55 +1.15
+12.23%
2.78M

% Losers

NBG-A
National Bank of Greece SA (ADR)
5.62-1.13
-16.74%
159,960
OSG
Overseas Shipholding Group, Inc.
10.32-1.51
-12.76%
1.49M
OC-B
Owens Corning (Warrant) 'B'
2.34-0.31
-11.62%
25,036
YGE
Yingli Green Energy Hold. Co. Ltd. (ADR)
5.25-0.65
-11.02%
9.21M
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