Do You Know the Future?
Another year has nearly passed us by, with all kinds of changes and shifts in global markets. That is certainly nothing new when it comes to investing. Going forward there looks to be more uncertainty to follow, much of which will hinge on the resolution to the Fiscal Cliff in Washington. Of course, it’s the surprise events that no one sees coming that take the biggest hit to investors. The Financial Crisis of 2008 and 2009 is an obvious example. This year the sudden slow-down in China hit oil and gas producers as well as other resource companies. On the other hand, American and European stocks have been soaring! Are we in a long run bull market, or are stock prices topped out and set to tumble? What is the global outlook for 2013? When will interest rates rise? The correct answer is, and the only one that should come immediately to mind is, “I don’t know” or “who knows?”