Year-end Round-Up

The Year-End closings for 2012 were in the S&P 1,426.19, Dow Jones Industrials 13,104.14, Nasdaq 3,019.51, EURO/USD 1.3191, US 10-Year Bond 1.76%, Gold $1,674.30, Crude Oil $91.59.

Economic growth will rebound in Asia including China as well as the BRICS (Brazil, Russia, India, China and South America) . Europe will be the worse on the planet in terms of economic growth and the elections in Germany come September will keep capital cautious with respect to any investment strategy in Europe long term.

2013 will be the year of the emerging markets, as a whole, they should post growth rates of at least 5% with the USA at best being around 2-3% with Europe at best reach 2% is in real terms come in at a break-even to negative thanks to France. China should come in at 8% and could reach 10%. South East Asia will also post perhaps the best gains of all.

The economy will be the greatest concern almost everywhere in 2013.China is still growing and will become the largest economy in the world  as early as 2016 thanks to Obama nonsense with insane tax hikes following France. Interest rates still appear to be poised to rise and the central banks will be powerless to stop it. This is what happens when cash leaves banks because they pay nothing and in Europe it is more akin to playing Russian Roulette.

The stock market basis the Dow shot higher. Gold closed higher than 2011 warning that 13 years up is not a charm. Support rises to 1400 becoming critical now. Oil also closed higher scoring the highest annual closing.

Washington will work out a budget compromise to avoid the “fiscal cliff” of course because the failure may cause riots. But the U.S. Senate leaders, while being very close to a deal to avert the “fiscal cliff”, appear that the compromise will heavy on tax increases and light on spending cuts.

So what else is new. Happy New Year.

Perhaps French should become a required language under Obama in schools.