It’s the Fourth of July—time for fireworks, barbeque, apple pie and celebrating America’s independence. And a great time, in our view, to reflect on the year to date and think about what lies ahead.
2012’s first half was choppy as folks rehashed PIIGS fears and other widely discussed macroeconomic issues, but global stocks finished June in positive territory for the year. And we expect strongly positive returns in the second half. This may seem counterintuitive when headlines bemoan eurozone troubles, slowing Chinese growth and the US’s looming “fiscal cliff.” But news outlets have had incentive to promote negative stories since the dawn of print media—good news doesn’t sell papers. In our view, today’s headlines are likely more an indication of dour sentiment than the market’s future direction.
News that is both fundamental and underreported is what typically moves stocks. And there are plenty of real, positive fundamentals that are largely unnoticed—what follows is a mere sample of the good news you likely won’t see splashed across headlines:
As always, negatives exist, but today’s negatives have been widely known for some time and thus likely aren’t powerful enough to counter underappreciated positives (though volatility could very well continue). So here’s to freedom, free markets and more bull market ahead.
Have a happy Fourth.
If you would like to contact the editors responsible for this article, please click here.
*The content contained in this article represents only the opinions and viewpoints of the Fisher Investments editorial staff.