An Advisor’s 5 Market Wishes for 2012

I'd like to see unemployment fall to pre-recession levels. Jobs! Jobs! Jobs! With millions out of work, Christmas was rather bleak for many. Even though we focus on the slow retail sector, the real focus should be on those millions who are not able to spend as before. As jobs increase, people will begin to spend and pay taxes, and everyone will benefit.

Hope #3 European Debt Resolution

I'd like to see a prudent solution in place. I realize it's naive to think Europe will be able to somehow escape its dilemma without a scratch. In fact, the countries will probably be admitted to the critical care unit before this ends. You cannot overextend to the extent that Europe did and not expect to experience pain in the resolution. In fact, any viable solution is going to require an extended period of time. So perhaps Hope #3 is good for the next five years.

Hope #4 Emerging Market Growth

If the emerging markets can continue to grow at a robust pace, then that will attract "hot money" and cause inflation. However, if the rest of the world can work out its problems in short order, the money will flow out of the EM's and save them from a more serious bubble-bust scenario. Timing will be everything.

Hope #5 Peace on Earth and Good Will to Men 

I hope there are no nuclear attacks, mass riots, natural disasters, or anything else that would cause pain and suffering to mankind, in the physical or economic sense. I suppose you might say I hope for world peace. One can always hope.