379. 2012 Market Considerations

Welcome to 2012. Here are some thoughts to begin your New Year planning and strategies:

• The first article suggests U.S. commercial real estate market is ripe for foreign investors. And why not also you? Look for REITs in commercial real estate to provide nice dividends and keep their value. Brazil was also offered as a palce to invest in commercial real estate. Don't forget the Olympics there will boost Brazil's economy and provide pickings. I maintain my REITS gratefully.
• Japan has been on the big man's hit list all through 2011, if not the last decade economically. Another large earthquake greets the New Year. I your thoughts are like mine, I would avoid investments in Japan. However, I would look for companies who specialize in damage control and cleanup. We'll have to wait to see if Japan's banks can ever find a way to turn the economy around given the disasters there. My vote is to overall stay away and let the smoke settle.
• Ha Ha. "Euro could become world's leading currency: Noyer" is the first joke of 2012. Click on the EUROPE category at the right for the latest update on European crisis. With the dollar currently the currency that still "drives" the world (trading in oil purchases, precious metals, central bank swaps, etc.) and the Chinese Yuan a very strong second, not to mention their like dominance of the number one economy in the coming decade, HOW can the Euro ever compete? Noyer must have been eating too many fudge and cookies for New Year Eve to dream this up. Even if they can conquer the extremely ill Euro, it will take a decade or two to stabilize and solidify the 17 members they have now (or build back up to 17). So, invest in Europe? Long-term yes. Sort-term yes, but in a volatile market. Hence, pick the lows and take what you can for 2012.
• Related to above, check out the Yuan possibilities discussed here. China will continue to grow. They have flooded their large cities with commercial capital and projects. Probably more than needed until real people move to the cities and the residential consumer starts utilizing the local products. Look for this to happen. As for the yuan, it will maintain its strength in the same way it has. In other words, don't get comfortable with the Republican bashing of the Chinese currency manipulation. It has and will continue to strengthen on its own, driven my the market! I see China's inflation to outpace 2011 and force them to strengthen the yuan even more to counter the inflation. 2012 will be a delicate balancing year for China. But they WILL NOT stop growing! With the Emerging Market ETFs getting battered in 2011, and the outlook for Brazil, China, and India looking again brighter, and the U.S. economy turning around, I am betting on a reemergence of the Emerging Market strength. This article however heeds caution until we see firm forward movement again. I say, beat the crowd.
• Jobs are ALWAYS GOOD. Especially jobs in manufacturing and services. This means that peoplre are expected to buy and other companies need products and services too. U.S. Growth is the positive for 2012.

Okay. Now go off and do you 2012 planning. Check you diversity and balance across investments. Be prosperous.