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Don’t know which market guru to listen to these days? Investors need a strategy with many shades of grey

Bill Gross says markets are set for a crash. David Rosenberg says there's no need to panic. Which market gurus should investors listen to?

It’s difficult to know who to believe these days.?For every market guru for example Bill Gross who says financial markets are set for an accident, there are others like David Rosenberg who say there’s you don\’t need to panic.

But as difficult as getting it right may appear at this stage in the cycle, it might be just as vital that you plan on getting it wrong.

\”There are a lot of investors who view investing as black and white, but it’s more often than not shades of grey,\” said Bob Sewell, chief executive of Bellwether Investment Management Inc. in Oakville, Ont. \”It\’s important to have conviction, however, you need to have contingencies.\”

Perhaps the biggest uncertainty facing investors these days is the U.S. Federal Reserve\’s next move ahead interest rates.

BlackRock Investment Institute recently outlined three scenarios that may influence the central bank\’s monetary policy within the next few months and highlighted the likely impact of every on asset prices.

The first scenario is global stagnation, marked through the failure of the European Central Bank and Bank of Japan to bring back their respective economies through quantitative easing.

If this occurs, the Fed would hold off raising rates more than markets currently expect and create a flight to safety that would benefit government bonds although not much else.

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