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4 Worries From Morningstar's ETF Invest Conference

Panelists and attendees of this week's conference were concerned about the fiscal cliff, the deficit, fixed-income investing, and China.


Caution reigned over this year's Morningstar ETF Invest conference. As Morningstar's Scott Burns put it to kick off the event, many of the big investor worries in 2011 still remain in 2012. Despite some kicking the can down the road, underlying problems with the U.S. fiscal picture and the eurozone remained unsolved. There was still some optimism in the air. Many were hopeful about the slow but resilient U.S. recovery, recent equity returns, and the growth of the exchange-traded fund industry into new asset classes. But there were plenty of concerns voiced, too. Here are four big worries from the conference.

Fiscal Cliff
The fiscal cliff was one of the hottest topics of conversation at the conference. There was little disagreement that if current law isn't changed, the U.S. economy is set to fall into at least a mild recession in 2013. The currently slow recovery just couldn't withstand the drag from higher taxes and big cuts in spending. Add in the potential investment pullback from the already-cautious corporate sector as it waits to see what the damage is, and the economy could be in real trouble.

Bearemy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.