It’s not unusual for optimism to reign supreme on the first trading day of a new year. What’s more,Â considering just how far U.S. treasury yields have dropped, one might expect a shift out of the “panic room” and into the “risk trade.”
That said, there areÂ many reasons to rein in one’sÂ enthusiasm. For instance, even if Europe unites in a comprehensive effort to quell its credit crisis, the region is likely to battle economic contraction (a.k.a. recessionary forces) for most of 2012.
Of course, in spite of limited growth in Europe, slow growth in the U.S. and slowing growth in the emerging nations, the operative wordÂ is still “growth.” That means there will be demand for energy. And withÂ ongoing uncertainty in the oil-producing countries of the Middle East, one should not be surprised by priceÂ spikes inÂ Brent crude oil.
Consider the following: ExtraordinaryÂ changes toÂ European leadership and slower growth in AsiaÂ caused iPath DJ Total Commodity (DJP) to lose -13% year-over-year. YetÂ the U.S. Brent Oil Fund (BNO) gained 23% over the same period. In other words,Â “black gold” may still rise in price, even with geopolitical uncertainties.
Can Middle East Rumblings Push Brent Crude Higher? â€“ Staff, Money Control
ETF Focus: Corporate Bonds â€“ Tom Lydon, ETF Trends
Why This Agriculture ETF Could Outperform In 2012 â€“ Brian Pacampara, Motley Fool
Three Micro Cap ETFs To Play The January Effect – Best Performing ETFs â€“ Staff, Stock Market Review
Does It Still Make Sense To Diversify Internationally? â€“ Richard Band, Investor Place
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