2011 Market Review & 2012 Forecast

By Lawrence G. McMillan

With this newsletter, we have reached 20 full years of publication.  Hopefully, there will be 20 more!  As far as the stock market goes, it was a pretty wild year, but not necessarily out of character with the ever-increasing volatility that the market has exhibited much of the time in recent years.  Ever since the manipulated interest rate environment and accompanying bull market of 2006, where $VIX repeatedly dipped below 10, markets have been volatile.  It began with the volatility explosion in February 2007 and continues to this day.  So, in our forecast issues we include volatility forecasts as well as market forecasts.  Let’s begin, as we usually do, with a brief review of 2011, before getting into the forecasts for 2012...

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