A Look Back & A Look Ahead
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A Look Back & A Look Ahead

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While there is no way to predict what the future holds for our lives, financial markets, or even the economy, there are actions that can be taken along the way to help ensure the best possible......

While there is no way to predict what the future holds for our lives, financial markets, or even the economy, there are actions that can be taken along the way to help ensure the best possible outcome. The past couple of years have been a trying time for many around the world, and while the turning of the calendar to 2012 brings a spark of optimism toward the future, we must always be prepared for whatever the financial markets bring our way. I have learned a lot about the markets in these times and I too share that same optimism about the future, but perhaps for different reasons than many.

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  • 1. 6363 Woodway Dr Suite 870 Houston, TX 77057 Phone: 713-244-3030 Fax: 713-513-5669 Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC. Member FINRA / SIPC Green Financial Group An Independent FirmA Look Back & A Look AheadWhile there is no way to predict what the future holds for our lives, financial markets, or even the economy, thereare actions that can be taken along the way to help ensure the best possible outcome. The past couple of yearshave been a trying time for many around the world, and while the turning of the calendar to 2012 brings a sparkof optimism toward the future, we must always be prepared for whatever the financial markets bring our way. Ihave learned a lot about the markets in these times and I too share that same optimism about the future, butperhaps for different reasons than many.These days many are optimistic simply because of the feeling that things in Europe, the economy, etc. just can’tget any worse, right?!? That type of thinking is relegated to those types of people who sit back and let it happenwithout a proactive approach to navigating the tumultuous markets. I am not optimistic because I think theworst is over or that better times lie ahead; I am optimistic because I have a game plan for managing risk in thefinancial markets no matter what the future brings. My game plan does not involve listening to the mass mediawhich often breeds a “following the herd” effect, nor does my game plan involve my own gut feeling on themarket. The game plan that I adhere to, and will going forward is grounded in the basic economic concept of
  • 2. supply and demand. There are times when that means being extremely defensive on the equities market andparking a large chunk of the portfolio in cash,similar to the market of 2008. However, there are other timeswhen the equity market is supporting higher prices, like 2009 and 2010, and thus I will have increased if not overweighted exposure to the equity market. Who knows how the next 12 months will play out let alone the next 12years, and this is why it is so important for me not to try and predict what is going to happen; I will simply let themarket tell me what is happening and take advantage of those opportunities.There is no doubt 2011 was a tough and volatile year for the market. Trends in outperformance were few and farbetween. Perhaps the only trend that was apparent in 2011 was the trend of volatility. Consider this; during thecourse of 2011 the S&P 500 experienced three corrections of 10% or more during the year. That is quite a highnumber especially given the fact that from 2003 to 2007 the S&P 500 never so much as saw one 10%correction. History suggests that volatility like this does not persist for extended periods of time. But in the eventthat it does,there are proactive steps that I will continue to take in order to attempt to dampen the overallvolatility in your portfolio.2012 has started off on a positive note so far, and already there is evidence of emergent trends that I wanted toshare with you at this time of the year. With that said, as the New Year is now in full swing, here are the marketthemes that are in place today.  Equities have started the year off on a positive note and when compared to other asset classes, Equities, particularly Domestic Equities, come into the year as the strongest of the asset classes that I follow. Rallies in the equity market in 2011 came in fits and starts but as we head into 2012 we are doing so with a generally positive foundation. For instance, about 58% of stocks in the market are trading in an overall positive trend which means that a majority of stocks are trending higher in price. This does not mean we will simply throw a dart and pick stocks or sectors at random, but the weight of evidence for this asset class is positive.  One of the main positive headlines in 2011 was the record move in the price of Gold which managed to notch an all-time high of $1,892 in 2011, providing a bright spot for the financial market. However over the course of the past couple of months there have been some troubling signs from the yellow metal, not only in terms of absolute price, but in terms of strength verses commodities. One of the beneficiaries within the Commodity space from the weakness seen from Gold has been Crude Oil. The price of a barrel of Oil has crossed back above the $100 level. Undoubtedly, an increase in the price of Oil will translate to higher prices at the pump. However there are ways to benefit from higher Energy prices in your investment portfolio.  International Equities was the worst performing asset class of last year and the indicators I follow had this group falling out of favor in the fall of 2010. Over the first few weeks of 2012, this asset class that has been showing some positive signs. For instance, some of the bigger countries are showing some promise in areas like China, Brazil and even some of the European countries are
  • 3. moving back into positive trends. This will continue to be an area to watch closely, and as the positive signs continue to mount we will begin to allocate a bigger percent of the portfolio across the pond. The times when it feels like the worst time to be buying, as is the case now with everything going on especially in Europe, often ends up being one of the better times to allocate money to that space.If you have any questions about the particulars of your portfolio, or would like to discuss the potentialopportunities that I have seen arise within the equity market, please give me a call. In the meantime, Happy NewYear!Thank you for your business and support,Jeffrey A. GreenFounderRegistered PrincipalD-713-244-3030F- 713-513-56696363 Woodway Dr., Ste. 870Houston, TX 77057www.greenfinancialgrp.comSecurities offered through Raymond James Financial Services, Inc., Member FINRA/SIPCRaymond James Financial Services does not accept orders and/or instructions regarding your account by e-mail, voicemail, fax or any alternate method. Transactional details do not supersede normal trade confirmations or statements. E-mailsent through the Internet is not secure or confidential. Raymond James Financial Services reserves the right to monitor all e-mail.Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed byRaymond James Financial Services and is not a complete summary or statement of all available data necessary for makingan investment decision. Any information provided is for informational purposes only and does not constitute arecommendation. Raymond James Financial Services and its employees may own options, rights or warrants to purchase
  • 4. any of the securities mentioned in e-mail. This e-mail is intended only for the person or entity to which it is addressed andmay contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of anyaction in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you receivedthis message in error, please contact the sender immediately and delete the material from your computer.An index is unmanaged and cannot be invested into directly. Past performance does not guarantee future results. Anyopinions are those of Jeff Green and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of thisdate and are subject to change without notice. Any information is not a complete summary or statement of all available datanecessary for making investment decision.If you would like to be removed from this e-Mail list, PLEASE click the Reply button, type “remove” or “unsubscribe” in thesubject line and include your name in the message, then click Send.If you have any questions or concerns, please email Jeff at jeff@greenfinancialgrp.com or call 713-244-3030.