Wealth Watch Weekly E-Newsletter
As we approach the end of the year, we at Howard Capital would like to wish all of our readers a safe and happy holiday season.
We, as many others do at the end of each year, would like to give some thought to what we believe is in store for 2013. Many investors are bearish about 2013, arguing that all the optimism on the fiscal cliff is misguided. They say that the fiscal cliff represents the start of American austerity; that higher taxes and lower spending will put a lot of pressure on stocks.
What's my take? Let me answer this way. Last week I had the pleasure to be a guest on my good friend Mike Robertson's radio program "Straight Talk About Money" in Houston, Texas. His first question was, "Where is the market headed in 2013?" "Well, I'm bullish," I told him. "No question about it." He was somewhat surprised at my strong conviction on the markets going higher in 2013. Here are a few reasons for my optimism.
First, the HCM-BuyLine® is firmly in an uptrend and measures strong to very strong. Of course, we will have the usual periods of consolidation and the pullbacks that every year brings in the market. But, unless there is some unforeseen change for the worse in the domestic and global economies, these should be viewed as opportunities to add to positions.
Second, the Fed will continue to be more than accommodating, as far as monetary policy goes. They recently adopted a target employment level that basically represents full employment. This will continue to help the financial sector rebuild their balance sheets. As shown in the chart above of the Financial Sector ETF (XLF), this sector just had a very strong break out this week, pushing to a 52-week high. It looks as if it is about make a new four-year high. Financials do not break out to new multi-year highs when markets are about to fall apart. These are just a few of the reasons we are bullish for 2013.
As you begin thinking about a New Year's resolution for 2013, you may want to consider your financial future. A person's 401(k) can play a big role in life after retirement; and actively managing it can potentially bring that retirement date closer. The HCM 401(k) Optimizer® can help you do this. It provides you with professional advice and gives you recommendations on how to allocate your nest egg.
I will leave you with this thought: "Unless you marry a wealthy spouse or you're a short seller, it never pays to be pessimistic." Besides, being around a negative person is just plain boring.
Happy Holidays! Vance
About the Author
Vance Howard began his professional money management career in 1992 with the formation of Chartered Financial Services, Inc., which was renamed Howard Capital Management, Inc. in 1999. Vance specializes in research, development, and implementation of various types of trading systems.
http://www.howardcm.com/ https://www.hcm401koptimizer.com/default.aspx
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