Trusted Advisor Blog

Overall, 2011 was an uncertain year for the US and the world, and 2012 will likely be complex as well. Fortunately, despite the Mayan calendar prediction, the world will likely not be coming to an end, but significant challenges persist. Regardless of economic conditions and conservative consumers, we will continue to marry, graduate, have children, seek housing, travel and live our lives.

Living our lives to the fullest, in a complex world, requires being informed and prepared.  With the help of trusted advisors, facing unpredictable times can be less complicated. 

Following is a brief recap of 2011 as well as some economic influences to watch out for in the coming year.  We hope the knowledge we share empowers you to enter 2012 with informed confidence.  Remember…Jeff Palermo and his team are here for you!

2011 Recap

Better than anticipated:

Home Loan Rates - Historical low levels to finish out the year

Worse than anticipated:

Housing Market – 2011 second half never demonstrated the rebound most expected

Still weak:

Labor Market – modest gains, claims have fallen…but not strong enough

Exasperated conditions:

Japan’s Tsunami with consequential nuclear crisis and high oil prices furthered an already fragile economy

Unchanged:

After many ups and downs, stocks, on average, finished close to where they began

First time ever in history:

Standard and Poor’s removed US from list of risk free borrowers as US Debt was downgraded – stating that “the gulf between the political parties” reduced their confidence in US financial management capability

Across the pond:

European debt crisis weighs down an already uncertain year in finances and politics

That recaps what we observed in 2011…now for what to watch for in 2012

2012

Factors to expect:

Euro uncertainty and how it handles deficits will have significant impact on our economy, home loan rates, housing, labor market, oil, currency, elections, rising costs, stock market and the Federal Reserve System.  Demand for our safer-than-most Bonds from funds overseas should continue, helping home loan rates remain low while European uncertainty persists.

 At work…:

The unemployment rate is likely to continue its decline, in part due to Baby Boomers heading into retirement.  Additionally, slight improvements we have seen in the labor market should continue in the coming year.

 …And at home:

Delinquency rates should continue to decline, although foreclosure rates will continue to be a concern.  Overall, home prices will likely stay low or decline ever so slightly early 2012, and recover later in the year.  Still strong and gaining momentum will be the rental market and investment properties.  Overall a great rate environment (still at historical lows) will present numerous opportunities for homebuyers and those looking to refinance.

Market news:

Stocks from firms with proven ability will likely continue to perform well in 2012.  Look for a high return on equity, steady dividends and funds that seek solid growth potential.  Also, investing in companies you love, with products you love, is often a solid choice.  If you are proud to own a company, others are likely to feel the same way, which contributes to an establishment’s long term success.

Change in politics:

Americans, frustrated with the economy and government, are seeking change.  Animated battles are predicted in Congress over expiring bills and there are many issues to debate within this Presidential election year.

Change at home:

You'll also be seeing some exciting changes and new ideas from Jeff Palermo of Reliant in the near future, all designed to help you make sound financial choices in 2012. From our custom magazine Trusted Advisor, which contains relevant articles, to seminars and timely blog posts to keep you in-the- know, we are here for you.  You keep doing all the good things you are doing - we'll keep working hard to help you achieve your dreams.

Whether the best of times or the worst of times, always remember to live your life to the fullest, never lose sight of your goals and appreciate all you have, no matter how large or small.  With that – our closing toast inspired from one of our favorite market sources:

It is said “never cheat, steal, lie or drink to excess’…but we say, if you cheat; cheat death. If you steal; steal away from bad company. If you lie; lie in the arms of the one you love. And if you drink; drink in the wonderful moments shared with family and friends. Here's to Peace of mind, a prosperous new year, good health, happiness and energy to chase your dreams into a great 2012!