2012 has seen quick, substantial gains in all major indexes so far, with the DOW flirting with 13,000 and the Nasdaq flitting around 3,000. This is despite a consensus that the economy is weak, and any signs of recovery are tempered with weak expectations. Corporate profits are up and the job market appears to be recovering, yet every other week, another industry leader (recently Nokia and Wells Fargo) announce thousands to tens of thousands of planned layoffs.
President Obama's ill-received "the private sector is doing well..." quote may have been seemingly supported by stock market gains, can be countered by recent stagnant job numbers, manufacturing numbers, and weak consumer spending. Too much of these market gains appear to be based on speculation on what will happen in Europe or from action/inaction of the FED.
While there are a few choice stocks that I'm looking into, it may be a 'wait and see,' time for investing, because too often have expected gains been muted or not realized at all due to market trends from Euro crises or poor economic numbers.
Oil has been down lately, and I'm looking to get in. Currently have some shares of Transcanada Corp (NYSE:TRP) and I may take a closer look at Exxon (NYSE:XOM). I may be a week or two late on getting on board with Exxon, but Congress seems set on getting some form of the Keystone Pipeline approved. I also still like Neptune Technologies and Bioressources (NASDAQ:NEPT), which has jumped up over 33% in the past month. I got out today (June 20) but will be looking for a good buy in again soon.
To get back to my point, I would like to stay in and enjoy this Bull Run as long as I can, but with all the uncertainty I feel that a slight decline could turn into a precipitous drop for little to no reason. Should some negative report from the Fed or Europe come at the wrong time, panic selling could ensue. On the bright side, after the panic, there are often numerous buying opportunities so good luck to all!
Disclosure: I am long TRP.
Additional disclosure: Have been in and out of NEPT and plan to initiate a position in the near-term.