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7 Under-the-Radar Investing Events for 2013

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These seven events are not as high profile as the U.S. fiscal cliff and the European debt crisis, but they can just as easily blow apart your portfolio in 2013.

There actually isn’t any way to completely protect your portfolio from every possible scenario, especially as the global economy has so many moving parts to it. American investors can’t just focus on the fiscal cliff and European investors aren’t only concerned with the European debt crisis.

There are plenty of other big risks to markets and the economy that haven’t been as high profile as the two aforementioned events, but they could still affect your investing, according to Business Insider.

The strategists at Bank of America (BofA) wrote on seven lesser-known “tail risks” that are less likely to happen, but could have an “outsized impact on portfolios.” Some risks could even benefit your investments, according to BI.

According to BofA, these seven events may be less likely to happen, but they still have a one in 10 probability.

Here are the seven, plus who benefits and who loses should these events happen. As you’ll see, institutes or investments that would profit from one event are on the bottom for others. For instance, the Swiss franc does well if the 30-years-and-running bond bubble bursts, but poorly if Europe makes a comeback.

Europe makes an economic growth comeback

Winners: U.S. tech stocks, Eurozone periphery debt, European banks and the euro.

Losers: German stocks and the Swiss franc

Wall Street’s collateral crunch intensifies due to regulation

Winners: Short-dated U.S. Treasuries

Losers: Banks and small-cap stocks

U.S. employment really takes off

Winners: Banks, small-cap stocks, value stocks and emerging markets

Losers: Gold, blue chip stocks, growth stocks and bonds

China does a big currency valuation

Winners: Precious metals and debtors

Losers: Emerging market consumers, Asian currencies and emerging market debt

The 30-years-and-running bond bubble bursts

Winners: Gold, the Swiss franc and cash

Losers: Investment grade and high-yield bonds, mortgage-backed securities, municipal bonds, REITs and MLPs

Conflict forces a full-blown Iranian oil supply disruption

Winners: U.S. Treasuries, Russia, Brazil, frontier markets, energy and bonds

Losers: Airline stocks and auto stocks

The U.S. losses its energy advantage

Winners: International hydrocarbon producers, alternative energy and unregulated power generators

Losers: The United States, U.S. refiners and U.S. gas infrastructure

Read more:

7 Unexpected Events That Could Blow Apart Investor Portfolios in 2013 - Business Insider

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Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice