Well two steps forward and three steps back and now we are into December, about where we started the year. December historically is the best month for market returns. The so called Santa Rally certainly looks possible; companies are sitting on a record setting pile of cash, nearly 1 trillion as of the 3rd quarter according to S&P Capital. Dividends are up 16.5% this year from last year and are expected to meet or exceed the record set in June 2008 according to the same source.*
I am letting Santa know that I have certainly been good and asking for one thing; that my projection of the Dow being 12,788 or higher by year end come true. I guess we will see just how good I have been.
Please remember those that are unfortunate at this time of the year.
Happy holidays to all of you, and remember to stay healthy, wealthy and wise and certainly stay tuned. Your humble elf,
*Source Nov. 30, 2011 USA Today “Progress in Europe, job gains send U.S. stocks soaring”