I think that 2012 will be a growth year and 2013 might be really big growth. I will explain why I think that in a second but first the recommendations.
1) If you hold gold or other metals be thinking about selling. I already sold half of my gold for a small profit and all the rest will be pure gravy. Gold may go up in the short term but is still in a bubble. I think $2000 is a psychological barrier and I will unload the rest of my gold before that point or if they price begins to drop again. Watch it daily.
2) Now is actually a good time to buy stocks. But look for solid companies with good P/E and depressed prices.
3) Stay out of debt, but if you need to purchase something big like a car or house, then now is the time since I don’t think these low rates will last much longer.
Now for my explanation. I think that the markets, business leaders, investors, and almost everyone with any sense has completely discounted Team Obama, and Bernanke. In other words there is no downward push left to their failed policies. What everyone is doing now is just basically waiting for regime change.
The Euro debt crises has also had a slow down effect on investment, but I think the Euros will handle their problems and will come out a bit stronger. It is important to note that unlike our nation, nearly every European country has taken steps to reduce it’s huge bloated government. Small steps to be sure, but steps in the right direction. Meanwhile Eastern Europe and the rest of the world are still experiencing growth, just not as fast as before.
My belief based on past experience is that the worst of the Euro crises will coincide with the Republicans solidifying behind one candidate, and by middle of next year there will be a modest increase in investment, and employment.
Of course the idiots in the government could still find some way to screw everything up but you have to have some hope.