With all the scary headlines and "expert opinions" out there, it is quite difficult for one person to summarize all the possible outcomes for the economy and various investment choices out there. The graph below is by far the best effort I have seen to systematize all of them in one neat graph. I found it in Allianz's (parent of Pimco) earnings presentation this morning ( disclosure I own some AZM sub debt).

The world economy is now faced with 4 very distinct alternative scenarios (which by the way change after each substantial government action) and thus your asset allocation change accordingly every time you perceive we are heading to a new "final" scenario. In my opinion we are now in the process of moving from "Japan" scenario to the "Yes We Keynes" one.

Source- Allianz.com