Markets Commentary
What’s Hot
- U. S. companies continue to perform, and profits should continue to rise moderately in 2011. So, while the economy, government spending and personal households remain challenged, the stock market could post a respectable performance over the next 12 months.
- Residential real estate continues to look attractive as a long-term investment.
- Banking on prolonged strength in the commodities market and rapid industrialization among emerging economies, mining companies are deploying the cash reserves accumulated during a stretch of strong prices to quickly buy other miners or launch joint ventures. The number and financial value of acquisitions within the mining industry have been steadily rising over the last few months, reaching their highest totals since March 2008, according to Metals Economics Group, which monitors and tracks trends in resources. Source: WJF 12/4/10 B1
- Despite significant run-up, stocks still look attractive by conventional valuation measure.
What’s Not
- After years of delivering stunning gains, bonds may be a less-comfortable resting place for your money in 2011.
What’s Ahead
- In spite of a stagnant economic recovery rate, exports in 2010 contributed to higher earnings which will reflect in higher stock prices in 2011.
- Some prognosticators forecast investing in blue chip companies with emerging market exposure could be dominant strategy for 2011.
Now … what’s right for you?
Let’s talk.
John Karas
President & CEO
johnkaras@riverviewbank.com
(360) 693-7442