2012 Year End Report and 2013 Market Outlook

2012 has come and gone and we are left with another profitable year.

We began the year at Dow 12,217, reached a high of 13,662 on the Dow and settled at Dow 13,104.

Now remember, we time the markets using the Dow Jones Industrial Average but we only invest in the total market (when it’s the right climate for stocks).  Using our strategy we realized an approximate 17% gain in 2012.  Had we not decided to ride out the baby drawdown (10/05 – 11/16) we could have picked up a couple of extra points but all in all, 17% is pretty damn good.  I’ll take it.

In contrast, Bond investors earned almost 4% and Money Market investors earned about 0.04%.

So what am I expecting now?  The market is telling me to stay long of stocks.  If you listen you can hear it saying “Stay long, I’m not turning.  Stay long, I’m not turning”.  Well not turning soon anyway.  I am confidently expecting  14,115 in the Dow before we need to pay any more attention.

I will continue to invest any long term money I have in the total stock market.

I’ll let you know, right here, if something changes.

Thanks!