Friday, December 30, 2011

ALL THAT FOR WHAT?

The markets closed 2011 with a whimper today as the S&P closed the books with a small loss that brought the index to within a point of where it opened the year.  It was a tumultuous year to be sure with lots of wild swings and a treacherous environment for active investors and those buy and holders that could not withstand the 10% plus drops that happened.  2012 promises to be another challenging year with European problems still on the horizon and not behind us yet.  That said, we believe that 2012 will be a good year in the end.  Our focus the last few months has been much more on capital preservation.  That will continue as we enter the New Year. 

The lackluster end to 2011 will likely lead the way for an fast moving January as traders make bets on the winners for the coming year.  Volume will pick up significantly and we will soon get a sense of whether the modest December rally has enough legs to carry the market further for a little while.  With a short first week of January, it may end up being the second week before we get a true sense.  We are watching things closely as the next few weeks will be key to the 2012 year.  Sam and I wish you all a prosperous, healthy and wonderful 2012! 

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