How to invest in the age of stagnation

Economists (specifically the US National Bureau of Economic Research) claim that the US Great Recession began in December 2007 and ended in July 2009. But as far as I'm concerned, the Great Recession is still rumbling on. I'm far from alone. Nearly a third of Americans surveyed in a Gallup poll in April reckoned the economy was in a depression. Small wonder Americans feel that way. 14 million of them are out of work. More than one in four homeowners are in negative equity, according to research firm Zillow. US house prices have fallen by nearly 50% in numerous states, including Florida, California and Nevada. Britain's hardly any better off. The International Monetary Fund has cast doubt on the chancellor's deficit reduction plan, and manufacturing growth has all but ground to a halt. Cutting the deficit might well be the right thing to do – we can't keep spending wildly – but the process will not be comfortable. In short, the challenges are immense. So what's an investor to do?