This is the last day of the year 2012. In good news, the world didn’t end. In bad news, it isn’t obviously growing into a glorious future. The outlook is as wishy-washy as ever. Stocks and bonds are about even in momentum. The emerging markets in general (XEM) and China in particular (FXI) look attractive. But volatility is relatively high as volume has been light through the last couple weeks. Apparently, there’s a lot of nervousness around the U. S. fiscal cliff, but I don’t see that as a very big problem in comparison to some of the others our American neighbours have faced.

So instead of worrying about the markets, let’s toast the end of 2012, the beginning of 2013 and resolve to do what we can to make the new year better.

Market Outlook Dec 31, 2012

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