Out With The Old, In With The New…
Well, we’re at the end of 2011, and about to embark on a new adventure called 2012. While many market commentators are talking about the past year, and what could have been, I want to do something different…
I want to talk about the future.
I truly believe 2012 is shaping up to be a great year… and one that could seriously propel your portfolio higher.
Well there are a number of reasons. First off is economic data. It’s not really getting better… but more importantly it’s certainly not getting worse. Consider unemployment numbers.
While almost 9% of the US population is out of work right now, and another 6% or 8% is under employed, the numbers aren’t getting worse. Back during the Great Depression it was estimated unemployment hit 20% – 25%. Thankfully we’ve avoided that catastrophe.
Now, another important driver for higher stock prices in 2012 is housing.
I don’t know if you’ve seen the numbers, but housing starts, housing permits, and even housing sales are up. Granted they’re up from pathetically low numbers… but again we have stability or improvement… things are NOT getting worse.
We also pass an important milestone in housing this year… the 4 year mark.
Remember the housing implosion started in 2008. Now here we are 4 years later and all those families who sold their homes in a short sale are once again able to buy a house!
Now this won’t create a flood of new buyers, but some people will start to work their way back into the market. And again that’s great news for housing.
Once we see the housing industry pick up… and 2012 could be the year… we should see a lot of other industries start to employ more people. More employment means more purchasing power… that means more economic growth… and that’s great news for stocks of all shapes and sizes.
Of course, I’m a bit biased when I say small cap stocks will outperform the markets over the next few years. But I believe properly chosen stocks… smaller in size… will be able to quickly react to economic improvement, and grow quickly.
So be on the lookout for great small stocks in 2012.
As always, we’ll be bringing you great investment ideas in our free Radar Reports every week. If you’re also interested in getting more in depth research, I encourage you to try a subscription to “Zenect Wealth”. It’s our premium research product where we do a bit more in depth analysis and look much more closely at the companies. To learn more about everything that comes with a subscription to Zenect Wealth, click here.
We’re going to release our next recommendation on New Year’s day! So sign up quickly to get in on this first pick of 2012!
I hope everyone has a wonderful new year, and we’ll see you in 2012!