We are in interesting times and we have many choices before us. This month’s report includes strategies that could help you capture profits and keep you on the right side of changing trends.
Geopolitics are changing the game. Right now the world is experiencing great uncertainty surrounding the protests in the Middle East and Northern Africa. This political volatility is impacting more than just the people living in these countries. How will it impact you, the investor?
Is the US the next nation to face political upheaval? In any economy with large debt and high unemployment it is inevitable that calls for extreme political change occur. We are seeing it abroad. Will we see it in the U.S.?
What else can explain Donald Trump as the most prominent GOP presidential candidate? Good earnings continue to drive the markets. Once again, companies report earnings that beat estimates, the Dow pushed through 12,800 and we are seeing strong merger and acquisition activity. However, much of the activity is due to the weakening dollar. My report suggests strategies to position your investments for the probable downturn to take effect in 2012. The GDP and employment rates. U.S. unemployment numbers fell for the fourth straight month and net employment increased.
So, why did April’s jobless claims jumped unexpectedly? With overseas talent pools competing with U.S. workers, what is the employment outlook going forward and how will it impact U.S. GDP? Changes in the Feds policy will see interest rates rise. Quantitative Easing ends in June and the gradual outcome will be higher interest rates, a stronger US dollar and a weaker stock market. Read this month’s report to see how this policy change may impact your investments this year and into 2012.
The US dollar and debt Wheels within wheels. Why is no serious plan in place to deal with the U.S. debt and the declining US dollar?
A weaker US dollar makes U.S. equities cheaper to international buyers and US goods cheaper to international shoppers, which is good for the US economy and stock market. This month’s report opens a discussion about possible motivations behind current US fiscal policies. As markets become more complex and international power plays change the geopolitical landscape, it is critical that you discuss the investment ideas in this month’s Economic Outlook with a qualified financial advisor, focus on your strategy and take action.