Economic Outlook 2012 - Recommendations
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| For Business Executives |
For Investors |
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Expect: |
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Economy will remain stagnant |
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Unemployment to be stubbornly high |
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Dollar remains King and will strengthen |
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Consumers are spending their savings |
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Energy boom coming to U.S. |
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Advice: |
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Upgrade your staff and capacity |
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Don’t over hire |
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Diversify if export dependent |
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Expand domestic sales |
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Take advantage of lower import prices |
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Find opportunities in future domestic energy boom |
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Stocks: |
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Lower expectations for international and U.S. markets |
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No bull market on the horizon |
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High volatility rewards active not passive management |
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Favor importers and high domestic sales |
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Look for bargain stocks with strong dividends and stock buybacks |
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Bonds: |
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No repeat of 2011's great gains |
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Expect volatility |
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Great bond bull market coming to an end |
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Avoid buy-and-hold for long term bonds |
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Active management required to succeed |
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Eventual leadership may change to TIPS, Munis, and Corporates |
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