Summit-by-summit measures to contain Europe's financial crisis are not providing the markets with the same confidence that the Troubled Asset Relief Program did for the United States. As long as the European overhang exists, market participants are unlikely to take on enormous risks.
Personally, I am not intrigued by piling into risk-off, low-yielding U.S. treasuries. I've been more inclined to run with higher-yielding assets that also have potential for client capital gains. I still like investments with historically wide yield spreads with comparable treasuries, including but not limited to, Vanguard Long-Term Corporate Bond (VCLT), iShares High Yield Bond (HYG), iShares FTSE NAREIT Mortgage REIT (REM), Vanguard High Dividend Yield (VYM) as well as PowerShares Emerging Market Sovereign Debt (PCY).
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