Below is a recap of my stock market predictions for 2012…
I originally made my stock market predictions in January 2012. Here is a recap of my financial market predictions below and how things have turned out so far during the first three quarters of this year. We will see how the final three months of of the year shapes out, and I will have one more year ending recap at the end of December as well.
- Stocks will continue a steady increase coming out of the Recession and pick up a normal growth rate of 8% gain again in 2012. The S&P 500 Index will end at 1,357 and the Dow Jones Industrial Average will finish this year at 13,194 on December 31st, 2012. Currently, the S&P is at 1,440 and the Dow is at 13,437. (We’ve seen a great run lately…lets hope it can keep up!) GREEN
- Apple will finally start issuing a quarterly dividend in 2012. I managed to get this one right! YEAH!
- Facebook will finally go public with the world’s largest public offering ever late in the year. We all probably know how Facebook went public this quarter much to the chagrin of many early investors. I bought a share of Facebook on the very first day it traded!
- President Obama loses and is not reelected to a second term. We’ll have to wait until November for this one.
- Unemployment will finish 2012 under 8%. Still not looking good here. We are currently at 8.3%.
- America will see a steady, healthy 3% inflation rate. Looking good!
- Home values will stabilize across the country with most regions reaching a 1% annual growth on home prices. Not so sure about this one. The housing market is slowly starting to creep back in many markets around the country.
- The Federal Reserve will raise the Federal Funds Rate to 0.75%. Not looking so good for this one.
- GDP growth in the US will be 3% in 2012. Looking Good!
- Mortgage rates and the interest rate on the 10 Year Treasury will start to increase, steepening the yield curve. The 30 Year Fixed Mortgages will be at a 5.0% interest rate by the end of the year. Not looking good on this prediction. The 30 year fixed rate mortgage is still low at about 3.5% average for the nation.
- The personal savings rate in America will continue to fall and finish the year at 1.0%. This one is unfortunately coming true as more people revert to their old ways of NOT saving enough.
No one knows what the future holds, of course, but I thought that it would be fun to have a little guess and make some economic and stock market predictions for the new year and to keep up with how my financial market predictions have done throughout the year. This is the third installment of my financial market predictions. I will finish the recap on December 31st 2012 to see how my stock and financial market predictions pan out.