2012 Part 2

Hi again. I know you've been anxiously waiting my comments on my prognostication for the rest of the year. So here we go. In short, it's stuck. After I wrote the first blog, saying the same thing and commented on the fact that to an extent the market will be political-news driven, I was reading an article/opinion in Investor's Business Daily. It stated: "Look for ups and downs in the polls to have just as much, if not more, influence on this year's market . . ." I couldn't have said it better. I'll repeat my own take on this. The market wants the current president to go back to Hawaii or Chicago or wherever. He has worn out his welcome.

The year 2011 came and left with a whimper. Our market ended about where it started. However, there were some serious gyrations during the year, especially last August. So we were flat. The rest of the world did not fair so well. Germany and France were down 20%. Brazil was down 26% (even after Miss Hillary said we should be more like Brazil). In Asia, Japan was down 16%, India down 40%, Hong Kong down 18%, Taiwan down 25% and the new gorilla in the China Shoppe was China, with it's small public companies down 36%. I say small because their biggest companies are not up to our standards.

So, even the liberal LA Times said it's been a "pretty good year."  Some would say we were in a bear market. If you define a bear market as a reduction in the market of 20% or more, than we were. But hold your horses. Nobody, especially in the Obama-Obsessed-Media will call it that. It all depends when your starting point and ending point is. It depends on your definition of "is." I guess I should join them and blame it on Pres. Bush, but this "recovery" started two full years into this presidency.

Lastly, I'm an eternal optimist. The American economy and Americans in general are too strong and too resilient to even let this Neo-Marxist administration keep us down for long. The IBD said, " . . . the fact that our country is being run by the most anti-business, anti-capitalist, anti-free-market, anti-entreprenuer and anti-Wall Street administration in U.S. history."

This year will plod along. There will be plenty of opportunities to buy good stocks. Plenty of chances to make extra income. And plenty of time to get your own business up and going.
May you prosper well.
Wade