What a Difference a Year Makes

What a difference a new year brings! It was amazing to watch the change in stock market performance from 2011 to 2012. As I mentioned in our last letter, 2011 was a year of angst and gnashing of teeth. The market was down a couple hundred points one day only to swing back a couple hundred points the next. 2012 has been very much the opposite. The market has been very tame, with very little volatility while having strong gains this year (we didn’t have a greater than 100 point loss on the Dow until March 6th). We are off to a great start!

What is even more encouraging is the anecdotal information that we continue to see around us. Unemployment has fallen. Businesses are reporting increasing orders and profits. Companies are raising their dividends. While Europe seems to be dipping back into recession and China has slowed down, the United States is getting back on its feet and expanding.

There is still some concern that Europe and or China will drag on our economic growth this year. The U.S. presidential election this fall could create some political turmoil as well. That being said, we are investing in solid companies that we feel will provide above average returns going forward.

As we continue to move our firm into the 21st century, Cantlon Financial Planning is now on Facebook. Visit our website at www.cantlonfinancial.com and click the “Like us on Facebook” button on the right side of the screen. When you Like Us on Facebook, articles that we find interesting will show up in your Facebook Newsfeed. Our plan is to find one newsworthy article each week to highlight for you. This is just one more way for us to keep you informed and educated about your financial well-being.

Very truly yours,

Michael F. Cantlon