JENNIFER'S TIP

BUY AMERICA

The resilience of the US markets are a testament to both the health of the global economy, the financial strength of American corporations and the merits of disciplined investing. In the US several factors point to a continued rally; the Federal Reserve has allowed some banks to resume paying (or raise) dividends, corporate bond defaults have fallen sharply and earnings for companies in the S& P 500 are expected to grow 13% in 2012 (Bloomberg data, March 23). With many investors STILL sitting on the sidelines, there’s no shortage of cash ready to pile into the market. We are in the early stages of a huge asset allocation shift away from cash and fixed income towards equities. As usual institutional investors lead and retail investors follow.  Be at the beginning of this cycle and take advantage of lower prices!