Wednesday, January 11, 2006

The Yearly Questions

Here we go again. January rolls around, the world turns to look at the financial markets and people have a million questions. Not only do the questions come from the media and clients, but every cousin of your sister-in-law's maid wants an answer to the "Question of the Day". Here are a few things that are going bump in the night right now:

Will the price of oil go higher this year?

Will I get a good return on my stock portfolio this year?

What are the top five picks of the top, well-known investing personality this year?

Will the value of my house keep going up like it has the last four years?

What is the best mutual fund to own this year?

Will the economy keep expanding, or are we headed for a recession?

Will the Fed keep raising interest rates?

I love to read the opinions and predictions in January about these topics. There are just as many opinions on which team will win the World Series next year. Unfortunately, the World Series predictions may be more accurate. Predicting the direction of the economy, the markets, or even the price of oil is a guessing game. Nobody has a perfect crystal ball, but it's still fun to play the prediction game.

As for the answers to those questions above, I would say yes, yes, no, maybe, it's possible, probably so, and no, but the answers aren't in any particular order. If you need to know more, call my assistant and we can set up an appointment.