NEW YORK CITY-As the commercial real estate industry continues to operate under the cloud of the Euro zone crisis, panelists at Prudential Financial Inc.’s “Global Economic and Retirement Outlook” predicted that strong opportunities will exist in high-yield debt, CMBS and emerging markets in 2012. But given a weakened US economy, debt woes in Europe and increasing concerns of a property bubble in China, significant risks and uncertainty remain.

“We are looking at a world in 2012, in essence, of risky business,” said Quincy Krosby, chief market strategist at Prudential Annuities. “You will be punished if you are not in the equity market when the market feels like celebrating, but you will also be punished if you are not in fixed-income. It’s going to be a world in which you are going to want to have a firm footing in fixed income, but also spread out across the risk spectrum in equities.”

Edward F. Keon, managing director and portfolio manager of Quantitative Management Associates, said the burden of proof has shifted from stocks to bonds over the last decade. Based on fundamentals, however, Keon expects equity returns to remain in the high single digits and bonds will most likely will “pass the baton” to stocks.