In The Bleak Midwinter
2012 What next?
What a year. But what can investors expect next year? Well we know what the consensus thinks. Virtually everyone has been persuaded we're doomed.
Recently volatility matched extreme levels last seen 30 years ago. Prior to this year there have been only four other ones with as much volatility - 1942, 1962, 1974 and 1982. And they were all big turning points.
Over in the USA, still by far the largest economy in the World, three Wise Men are worth listening to - old timer Sam Eisenstadt, market historian Mark Hulbert and sentiment analyst Ned Davis. And they're all positive about next year.
So what should you do? Why not copy the best football teams after they hit tough times. They shore up their defence to cut out mistakes and leave nimble footed attackers upfront to beat opponents.
So stiffen your defence with folks like Sebastian Lyon at Troy, Neil Woodford at Invesco Perpetual, James Harries at Newton, Bill Mott at PSigma, and David Jane at Darwin.
But with the 3 wise men and contrarian factors pointing to a better year, I'd keep faith with match winners like Stuart Rhodes and Graham French at M&G, Robin Geffen at Neptune. Angus Tulloch and Jonathan Asante at First State.
Real value lies in good quality International and UK Income Funds, and for growth - the Developing World.
Whatever you do, don't sit on the sidelines in Cash.