What does the investment landscape look like in 2012? - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

What does the investment landscape look like in 2012?

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Wednesday, January 4, 2012 4:00 pm

As an investor, you know that 2011 was a somewhat "choppy" year, with the financial markets going through many ups and downs. So what can you expect in 2012?

As baseball Hall of Famer Yogi Berra is quoted as saying: "It's hard to make predictions - especially about the future." And these words are certainly applicable for anyone who would like an accurate forecast of the investment climate.

Yet, we do know of some factors that may affect your portfolio in the months ahead. Here are a few of them:

• Strong business fundamentals. This past year, all the noise about the debt ceiling debate, the size of the U.S. deficit and the European financial situation tended to drown out some fairly good news: U.S. businesses' balance sheets were strong for the most part, borrowing costs remained low, and corporate profits were good - and corporate profitability remains a key driver of stock prices. Heading into 2012, these fundamentals continue to look positive, which may bode well for investors.

• Europe's debt crisis. Greece's economic problems made a lot of news in 2011, but they weren't the end of the story in Europe, as major financial difficulties also face Italy, Spain, Portugal and Ireland. It's by no means clear how these problems will be resolved, so don't be surprised to see them lead to intermittent, if short-lived, shocks to the markets.

• Election-year patterns. As you're well aware, we're voting for president in 2012. But you might be surprised to learn that the S&P 500 index has shown negative returns in only three of the last 21 presidential election years. Coincidence? No one can say for sure - and at this point, no one can say if this pattern of positive returns will continue during this election year. Still, it's an interesting phenomenon.

So there you have it: the good, the bad and the quirky. Take them all together, and you still may not be able to foresee what will happen with the markets this year, but you'll have a lot to think about. But instead of trying to predict what will happen in 2012, you may be better off following these tried-and-true investment strategies:

• Diversify your holdings. By spreading your money among a wide range of investments, you can reduce the effects of volatility on your portfolio. Keep in mind, though, that diversification, by itself, can't guarantee profits or protect against loss.

• Don't ignore your risk tolerance. If you worry excessively about market fluctuations, you may have too much risk in your portfolio, which means you may need to make some changes.

• Always look at the "big picture." Financial markets will always fluctuate. But if you can keep your focus on your long-term objectives, and make decisions accordingly, you can avoid overreacting to short-term events.

Like other years, 2012 will bring with it periods of both turbulence and smooth sailing. But by making the right investment moves, you can still chart a course that can allow you to move ever closer to your future goals.

• This article was written by Edward Jones for Cyndi Newburn, an Edward Jones financial advisor in Ahwatukee Foothills. Reach her at (480) 460-1149.

More about

More about

More about

  • Discuss

Texas, facing a lawsuit, makes it easier for U.S.-born children of immigrants to get birth certificates

Last year, a group of Central American and Mexican immigrant parents sued Texas in federal court, claiming that the state had denied their chi…

Published: July 25, 2016 - 11:03 pm @ http://www.latimes.com/nation/la-na-texas-birth-ce…

Hiker rescues up in 2016; hundreds helped off Valley mountains so far

PHOENIX - It's a desperate situation that frankly firefighters are seeing way too often. "I think that this year we've just had some real trag…

Published: July 25, 2016 - 10:29 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Protests Over Western Troops Threaten Libyan 'Unity' Government

Print Libya's UN-backed Government Condemns France Following Crash Three French Soldiers Killed During Operation in Libya Islamist-backed demo…

Published: July 25, 2016 - 9:36 pm @ http://www.voanews.com/content/libya-un-backed-uni…

Phoenix Serial Street Shooter likely using multiple vehicles

PHOENIX - Phoenix police said they are getting new details and tips about a serial shooter connected to seven murders . But investigators can’…

Published: July 25, 2016 - 8:58 pm @ http://www.abc15.com/news/region-phoenix-metro/wes…

Group behind $12/hour minimum wage initiative wants lawsuit dropped

Arizona Healthy Working Families, the group behind a ballot initiative to make the state's minimum wage $12 an hour by 2020 , wants to dismiss…

Published: July 25, 2016 - 8:35 pm @ http://www.abc15.com/news/state/group-behind-12-an…

Larry Fitzgerald remembers Dennis Green in essay

Dennis Green was more than just a football coach. In a Player’s Tribune piece written by Larry Fitzgerald, the wide receiver recalls his longt…

Published: July 25, 2016 - 8:28 pm @ http://arizonasports.com/story/744945/larry-fitzge…

Praising Kaine: How Clinton's choice of a widely respected senator drives a deep wedge into the GOP

Hillary Clinton announced her selection of Virginia Sen. Tim Kaine as her running mate late on Friday evening, and something incredible has al…

Published: July 25, 2016 - 8:27 pm @ http://www.dailykos.com/story/2016/07/23/1551229/-…

Arizona becomes the last state to provide health insurance to low-income children

Arizona is rejoining a children's health insurance program for low and middle-income families, becoming the last state in the union to provide…

Published: July 25, 2016 - 7:58 pm @ https://www.washingtonpost.com/news/to-your-health…

The WNBA’s Black Lives Matter Protest Has Set a New Standard for Sports Activism

This month, the WNBA has become the site of one of the most united, persistent political statements in sports history. In recent weeks, entire…

Published: July 25, 2016 - 7:31 pm @ http://www.slate.com/blogs/xx_factor/2016/07/25/th…

In Opinion: Chances of survival for a Democratic Senate are slim

This article first appeared on the Dorf on Law site. Many Democrats are anticipating a big night on November 8.   Although the inevitable nois…

Published: July 25, 2016 - 7:30 pm @ http://www.newsweek.com/chances-survival-democrati…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…