This year, however, analysts believe that large investment in bonds is too safe a bet. With the U.S. showing signs of sustained recovery, equities are a better investment. "[Last year] was a relatively strong year for fixed income," Veranth said. "We don't expect the same sort of returns in 2011. In fact, we predict low single digits or lower."
The continuing crisis in Europe also provides an investment opportunity, according to Veranth. Few expect the outcomes in Europe to be good. In fact, investors have been betting against recovery for most of 2011. This has sent the price of large multinational companies like General Electric down.
[See Why Mutual Funds Make Sense in a Volatile Market.]
Veranth believes, however, that the price for multinationals has been pushed too low.
"Earnings estimates for a lot of large companies have come down significantly. Some of them may have come down too much," Veranth said. "Large multinationals can invest wherever they need to around the world. Even when Europe was relatively healthy, there was significant growth in South America and Asia. There's more room to grow."
Twitter: @davidcfrancis
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