Stocks ended the year on an up-note and didn’t look at all worried about going over the “fiscal cliff.” The Dow Average rose 166 points on the last day of trading and ended up 7.3% for the year. The 15-51 strength Indicator added 3.1% on the last day of 2012 action and finished the year ahead by 24.3% – more than three times better than the Average. Gold, still entangled with the Dow’s trend-line, gained 6.6% for the year. See the chart below.
Stock valuations should still be considered high, or over-valued, in the midst of a slowing global economy, higher taxes, a depreciating dollar, and chronic political tomfoolery in Washington DC.
Make no mistake – Market conditions remain hostile!
These are good times to review your portfolio and asset allocations.
Stay tuned – and let me know if you need help.