August, 2012 Archives

28
Aug

2012 Mid-Year Outlook: What the Elections Hold for Investors

by admin in Global Investments

By Jeffrey Kleintop Dear Valued Investor,

At the mid point of the year, 2012 is on track for the key elements of our forecast that we articulated at the end of 2011. We argued that finding a middle ground, or Meeting in the Middle, would be key for growth in the markets and the economy, and this has been the case. We continue to expect the U.S. stock market will likely post high single-digit to low double-digit gains, backed by mid-to-high single-digit earnings growth.*

 

During the next several months, the November elections will likely become an increasingly potent driver of the overall markets and particular investments. In addition to this important market driver, market volatility, which we expect to persist for the rest of 2012, may again present risks to be sidestepped and opportunities to be taken advantage of.

 

Please enjoy video: (http://www.youtube.com/watch?v=1nWPsaqg0Os&feature=youtu.be)

 

Sincerely,

Jeffrey Kleintop,

CFAChief Market StrategistLPL Financial

 

 

 

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

 

* LPL Financial Research provided this range based on our earnings per share growth estimate for 2012, and a modest expansion in the price-to-earnings ratio. Please reference the Mid-Year Outlook 2012 and Outlook 2012 for additional perspective on our beliefs within this letter.  MEMBER FINRA/SIPC

 

25
Aug

The Romney Program For Economic Recovery

by Riaan Nel in News

Here is a link to Glenn Hubbard’s site regarding the Romney Economic Plan: http://www.glennhubbard.net/papers/407-the-romney-program-for-economic-recovery-growth-and-jobs.html.  (Hubbard is an advisor to Romney.)

25
Aug

Is It Time For Ben To Go?

by Riaan Nel in News

 

Mitt Romney this week announced that he would not reappoint Ben Bernanke as Chairman of the Federal Reserve.  Here is Paul Krugman’s take on the GOP’s current stance regarding monetary policy:  http://krugman.blogs.nytimes.com/2012/08/24/gop-intellectual-decline-monetary-edition/.  

 Then there is the rumor that the Republican Convention’s platform wants to advocate a return to the gold standard.  I am still a believer that Ben Bernanke did a stellar job given the circumstances since the crisis.  I believe history will judge him to be one of the saviors of global capitalism during the financial crisis.  Mistakes were made – it is easy to survey the last five years and point out where things could have been done differently.  However, I think things would have been so much worse if not for actions taken by the Fed under Ben’s leadership.  Sure, we don’t know how things are going to turn out, nor do we know if and to what extent the extraordinary expansion of the Fed’s balance sheet will fuel future inflation.  But the actions taken by Ben were, for the most part, risks worth taking.  Economic conditions would have been much worse if not for the Fed. 

 A return to the gold standard!  Really? 

22
Aug

How Obama’s Long Game Will Outsmart His Critics

by admin in News

By Andrew Sullivan

I want to make it clear – I DON’T ENDORSE THIS ARTICLE, NOR THE ONE BELOW.  Andrew Sullivan in The Daily Beast makes a solid case for Obama.  (I’m being fair and balanced – the case against Obama is made below.)  Read Andrew’s article here: http://www.thedailybeast.com/newsweek/2012/01/15/andrew-sullivan-how-obama-s-long-game-will-outsmart-his-critics.html

22
Aug

Niall Ferguson’s take on Obama

by admin in News

By Niall Ferguson in Newsweek

Let me be clear – I DO NOT ENDORSE THIS ARTICLE.  I have an immense respect for Niall Ferguson because his book on financial history has been a phenomenal source in researching my thesis.  There are things I agree with, and things I don’t agree with in this article.  Here is the article, you decide:  http://www.thedailybeast.com/newsweek/2012/08/19/niall-ferguson-on-why-barack-obama-needs-to-go.html.