12 Days of Christmas: A Wealth Management Wish List for 2012
Hopefully, a comprehensive deal can be reached that at least includes the extension of the payroll tax cut for 2012.
A pair to join Chairman Bernanke, Yellen and Dudley to assure that any substantial softness in the economy would be met by aggressive non-traditional monetary policy (e.g. QE3).
Heres hoping the European Union, European Central Bank and IMF devise a comprehensive plan to resolve the European debt crisis and restore confidence in the longevity of the European Union.
In order to maintain the growth momentum of the world's largest economy.
Twelve would have been better given gold at $1,750/ounce, but we don't want to be greedy. It would also be "golden" if the Italian 10-year sovereign bond yield (currently 6.6%) traded below 5%, signaling the healing of the Eurozone crisis.
Even though theyre currently at 6.56% as inflationary pressures fade to generate 7%+ economic growth in Asia ex-Japan. No "hard" landing in Asia would continue to buoy global growth and be supportive of risky assets.
That is our current year-end target (1305) to our 2012 year-end target (~1375 to 1400). Plus 2% in dividend yield makes for total return of 9% not too bad.
May be wishful thinking given the structural issues with employment, but President Obama will need a dramatic improvement to maximize his chances of winning re-election.
Which would be supportive of robust returns for this fixed-income sector one of our favorites!
Asset price inflation would be alive and well!
With S&P 500 earnings growth set to decelerate to single digits, double-digit P/E expansion (e.g. 11%) will lift equities.
Shop til you drop America!