OK... American Airlines files for Chapter 11 BK with $ 4 BILLION CASH in their check book. Nice, I should be so lucky to reorganize my debts with that tidy sum in my check book....I'm going to stop right now on that subject!!
2012 looks like another gut wrenching stomach churning year for the stock market. At least another year you have apprehension to open your quarterly IRA or 401K statement. Another year of losses, another year of catch-up to make up for the value lost, another year you do nothing to get back on track, another year of oh well the market will eventually go back up, etc. etc. etc. I have an idea for a New Years resolution; forget about the usual resolutions, (ie) I am going to lose 25 pounds, I am going to stop smoking and really do something for yourself and your family. Make a resolution that you will NEVER lose another nickel in your retirement savings from this time forward. Make a resolution " I will NEVER play catch-up again with my money. I have several ideas on how to make this years resolutions a reality. Also for all you "big brains" out there that want to stay in the stock market and load up your portfolio with bonds one piece of advice; tread very carefully. You may have been dodging bullets up to the present time but the long term battle is far from over.
Let's talk about inflation. Not much new to say. Look for inflation to be around 3.5% this year and 2% in 2012. No problem, however another year of depressed interest rates means you make zip on your money market and CD accounts at your favorite bank and credit union. How would you like to earn 8-9% on your money next year tax free and not have to worry again about losing your principal? I have the answer.
Look for the housing price decline to come to a halt mid 2012. Look for 3-6% housing price increases in 2013 and beyond. Modest but in reality not bad at all for homeowners.
I have a very busy December with seminars and presentations so I may not have time to write in the blog in December so I want to wish everyone a Merry Christmas, Happy Holidays, and a VERY GOOD AND PROSPEROUS NEW YEAR.
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