If the Bubble Bursts

Marketwatch.com’s columnist Paul B. Farrell offers two scenarios for what to do if the “global mega-bubble” bursts: stay the course or play a new game:

If you believe a global megabubble is near, what’s your best strategy? Cash out now, at the top? Sell real estate, stocks too, rent, pay off debt? Then patiently wait until prices drop and buy bargains? Yes, that may be the best strategy for some.

The second expert we consulted, Gary Shilling, is an economist and author of “Deflation: How to Survive & Thrive in The Coming Wave of Deflation.” Shilling cautions: “There’s no such thing as a sure thing, so 100% cash is never appropriate. My recommendation now is 20% stocks, 50% bonds (mainly Treasurys) and 30% cash.”

Farrell gives specific investment suggestions from the experts he tapped for this article.