2012 Outlook by Jerry Pinsker

For financial markets, 2011 was a year marked by a battle between extremes in uncertainty and extremes in valuations – a tug-of-war that ultimately ended in a draw, with only minor gains or losses in major asset classes. In 2012, a similar backdrop awaits investors, as valuations have become even more extreme with the yields on many long-term Treasury bonds now well below core inflation, and P/E ratios falling even lower despite still-rising earnings.  Read more…