What ever happened to the Armageddon-style Global Financial Crisis Mark II.
You know the one… The double dip recession that we were meant to have.
The end of America…. leading to the end Europe and the the euro zone.
Which would bring China down and lead to the end of prosperity as we know it here at home in Australia.
I'm still waiting… But as yet, nothing.
Have the doomsayers got it wrong? Have the press over cooked the fear mongering? Is the world in a far better place than even most economist realise?
Speaking of economists, 14 out of 15 of them punted on the RBA lowering rates yesterday. They were wrong.
Keep reading to find out why…
I'm not an economist, so I'm not really qualified to answer any of the above questions, but l invest my hard earned money and have done OK over the years.
So let me have a crack at what I believe is going on and why, if your serious about making money in 2012, you need to pay attention.
For the last 6-12 months we have been lead to believe that the Euro zone would create an almighty thud and bring western civilization down with it.
First, Greece would go, then Spain, then Portugal, then France and eventually Germany.
But what happened instead, the world's largest economy the Euro zone actually saw an increase of 10% in corporate profits in 2011.
Yes it had issues, lots of them…
But in a weird way, those weakness once sorted out, will become their strengths as the whole region becomes more fiscally responsible.
The euro will not go into recession. It will grow by a modest 2.0% GDP.
This is a miracle in itself if you believe all the bad news that is out there.
But what of Greece, today being yet another D-day on whether they will or won't default.
Here is what will happen if they do default (unlikely). The equities markets will fall for a day or two and then reset for what is to be a great year for the stock markets globally…
Especially right here at home in Australia.
Most smart folks have factored-in a Greek default and if it comes, no one will be surprised or shocked.
Don’t get me wrong, the Europeans have lots of issues to address, but with the back drop of a stronger global economy lead by the US recovery and even stronger China, Asia and Latin America… It will have the time to sort out its issues.
Again, the RBA recognizes this and did not lower interest rates.
Speaking of the US, it will be a star performer in 2012.
The numbers are not out yet… but the old US of A is on the rise again.
It is showing stronger consumer confidence, consumer credit, stock levels at record lows, jobs improving and increasing.
… All of this leading to a great year for them.
Plus add to that huge piles of cash sitting on the sidelines, a slight change of market sentiment will see a flood of equity and broad global markets buying in.
So what about China? We keep reading and hearing how their growth can't last and they are on the brink of a collapse of gigantic proportion.
The latest data showed an amazing 9.1% GDP growth in 2011 and true predictions are for a “slow-down” in 2012 to 8.9% (very funny).
Sorry. No slow down, no almighty crash and no double dip recession.
Consider that the Europeans will be fine and the US is in the early stages of recovery, the Chinese will benefit even more in a stable and robust global economy.
So what am I doing?
Well, I have been on the sideline with the equity markets for a long time, but now l am a buyer.
My prediction is that it will be a great year for our stock market right here in Australia and if you do a bit of research and homework, you could make a lot of money this year.
Don't believe me..?
Well take a look at a chart of the stock market for the first month of the year…
It's up 7%.
Haven you noticed?
The trend has already started; most investor will miss it and probably get in when it's too late.
Don't be that person.
So, what's your view? Do you have one?
If you don't, you'll fall into the view of “general consensus” which in this country, is whatever the media reports.
I have to admit, l am not a big fan of the stock market but l like making money and getting on a trend when l see one.
Also, l keep in touch with the overall economy as a whole and the markets are a great place to see in an instant what the sentiment of investors is and where money is moving.
Add to that, l do a fair bit of real estate investing and recently have discovered a strategy that is going to create an insane amount of cash-flow.
In a funny way, the stock market is a leading indicator on the longevity of that cash-flow in the real estate market.
Hey, while I've got your attention…
If you would like to know exactly what my #1 real estate focus and strategy is 2012 then l suggest you attend Growth and Cashflow 1- Day training event with Dymphna Boholt.
Here's how you do that:
It's a great event in general, lots of new information added and also a session on my killer money making strategy for 2012.
Which ever way you look at it, 2012 is going to be a fantastic year if take action.
Don't be a spectator – get involved.
Here's what important, you MUST do your homework, research, due diligence and get educated.
…only then can you make an educated decision on what is the best step for you moving forward. It's time to take responsibility of your financial future.
Don't leave it to anybody else, it's your life, your money and your journey.
The media has got a lot to answer for, however those guys are only doing their job. But if you are influenced by them, you are robbing yourself of an empowered future.
Signed with Success,
P.S. Look, I'm in on a lot of fronts. I won't be buying the general index, I'll be looking to pick the eyes out of it and look for individual stocks that I think will benefit from this new shift in sentiment.
P.P.S. What do you think is going to happen and rather than being negative, tell me about what you're doing to either take advantage of this trend or protect yourself from the contrarian view that we're going to see another major recession.
Post your response below.