The market is finishing up in pretty good shape. Of course that’s all relative as stocks are at best flat for the year, but given that we all would have traded our ________ (fill in your own blank) for such a conclusion during any one of the many wild rides we went during the year, I’d say “flat” is a happy ending for all.
The nice part about bringing in the new year is that it is full of hope. This year is no exception, and not without good reason. There are a number of positives out there:
2. Economic data has been better than expected…not great, but certainly not terrible and perhaps more important, better than the European Union
3. Investor sentiment is still very negative
Naturally however, there are also concerns:
1. Europe is a powder keg and could explode at any time…and likely will when we are the most complacent.
2. The stimulus from QE2 will be wearing off in the first quarter of 2012. Stimulus takes about 9 months to feel and last about 6-9 months. QE2 came in November 2010.
3. The forecasts in Facing Goliath: How to Triumph in the Dangerous Market Ahead are rapidly coming true and will continue to be a major headwind for the economy for several more years.
Of course “hope” is not an investment strategy. Leave that to the buy-and-hope investors destined for the market inferno. The key is to be tactical and to get the very best returns with the least risk possible…and that’s what we do. So, if you need some help with your year-end tax planning or would simply like a free review to make sure your portfolio is prepared for 2012 and beyond, just give me a call at 916-925-8900.
With just a few days left in the year, get your tax selling done and snap up a few of the great high yielding CD alternative bargains out there, especially in the corporate bonds and preferred arena, many yielding over 8-10%. Once that’s done, turn off your computer, forget the news, ignore the end of year market gyrations and simply enjoy the holidays!
From all of us at Springer Financial Advisors, we wish you a very happy and prosperous new year!
Regards -Keith Springer