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LPL Financial Chief Market Strategist Jeff Kleintop on the positive and negative news that could impact your investments in the year ahead.
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It's here if you lucky if you do an Amazon search of bestselling books with 2012.
And it titles.
The entire top ten -- -- of disaster and an apocalypse -- -- actually including 2012.
The return of Wetzel cold will which I don't see is such a bad thing since the last time he was here we partied like road he's -- -- that Led Zeppelin.
There's all estimated disastrous year for your portfolio does that mean Jeff -- top is gonna -- -- disastrous news he's from LPL financial he's -- and -- introduced -- -- -- disaster list Jeff should real all any year since the world is going to end on December 12 of next year anyway.
Well as a couple ways to look at it either it's an apocalypse.
The end of the world or.
It's a new with the rebirth then and maybe there's a transformation going on here I think one of the ways you can see a transformation in 2012 the could be good for your portfolio.
It's a look at the emerging markets you don't.
If you take a look at what China's doing taking their foot.
Off of the break even get cut interest rates instead of hike them as they did for three years that's good news in 2012.
The world's emerging markets will account for 50%.
Of world GDP for the first time ever that means you can focus on growth and -- the contractual are likely to see in Europe.
So that growth potentially you're looking that.
-- if you think that strong enough to offset the troubles were seeing in our country you know we just had our growth downgraded.
And of course Europe which is likely to fall into recession the new year.
Right I mean it's a very sluggish environment in the developed economies.
But in the emerging markets you know with them growing is it a much larger portion of the world economy it's important you know if you take a look at the S&P 500 companies profits.
Think it nearly half of those profits from sales overseas an increasingly.
A larger and larger percentage coming from the emerging market sectors like.
Industrials materials they may be theories that -- next year because they're very tied to that emerging market growth.
What do you make of this election coming up here in the latter half of 2012.
-- and I mean it'd -- to go into different directions is that send the market into different directions.
You know it's certainly gonna have a profound impact on investing next year typical typically election years are.
Flat but volatile the first few quarters and break out either up or down in the fourth quarter depending on whether the market likes the outcome of the election or not I think this time.
You're likely to get congress.
Both of both part of both suck -- of congress.
In the hands of one party and that means I think an environment the market will like usually doesn't like grid like usually likes gridlock and not united government this time we need policy action we need -- government I think the senate goes the Republicans.
And that's something I think that the market would welcome as -- -- -- -- that latter part of 2000 a couple of seconds -- that matter most businesses.
-- -- -- Terms and -- this regulation.
Regulation is this is the biggest thing here you know we're not we're not gonna get a lot of legislation next year but there's so many burdensome regulatory requirements that could be.
Relaxed it allow businesses to hire workers.
And not a move -- and growth initiatives that will be key I think that's big on their list that's what they wanna see from Santa this holiday season as they look out to the next year the return of.
-- -- little thank you Geoff Lewis and chatting with you it's right back all right -- was experience.
