Let’s get straight to it: the stock market is going to have a hell of an UP year in 2013.
1. The world is not going to end… at least not during our life times. Over the next several weeks we’re going to wake up same as before and find the world in fact does go on, and yes, we’ll all be back to work same as before.
2. The fiscal cliff is just a political speed bump. Yes, it will affect millions of people, but come on, let’s remember that changes in tax policy are nothing new… they always change… it’s the Congressional raison d’etre. In addition, the imminent collapse of the world Financial system will not be imminent. This idea will be ignored… for the time being.
3. Life will go on… and there is LOTS of money in the world… and it has to be put somewhere… some place where it can safely grow. Where is this place? It’s called the USA stock market.
Consider, I’m not predicting that the US economy is going to be good… It will be good for Corporations, but it will be no better for employees than it has been the last several years. That is not going to change. Globalization is continuing, and the days of the USA being the honey pot of Jobs for the world’s population is OVER!
What about Real Estate? Who cares, but probably the same as the past 2 years; with possible mild improvement.
Our Stock Market is pretty much the World’s Market. So, in trying to predict where it is going for 2013 I’ve tapped into the zeitgeist and it says the Market is going to go up nicely. The world will follow a few years later… the Market always moves first.