“Should Auld Acquaintance Be Forgot, and Never Brought to Mind?” 

-excerpt from Auld Lang Syne, a Scottish poem written by Robert Burns in 1788.

My response is a resounding YES!   Although traditionally this song is used to celebrate the start of the New Year at the stroke of midnight, it is also sung at funerals (ironic) and as a farewell or ending to other occasions.   Just as this year’s weather patterns have been extreme, we have endured unpredictable swings in the (pick one): social, economic and political landscapes, both here at home and worldwide.   I, for one, am happy to bid farewell, adieu, sayonara, rest in peace (and… excuse me… good riddance) to 2011.

 

In keeping with the insanity, TIME Magazine’s “Person of the Year” was the Unknown Protester and everybody was either part of the crowd or looking to identify with one.   It’s a year almost no one in America (and most of the developed world) wants to remember.  According to the Mayans, it’s the last year we’ve got before the end-times and the signs of the Apocalypse are everywhere:

Democracy moved to the Middle East after discovering it was evidently no longer useful in America.  Betty Ford, Liz Taylor, Joe Frazier and Jack LaLanne died, but Charlie Sheen and Lady Gaga lived. North Korea’s Beloved Leader Kim Jong-Il passed away after his true golf handicap was revealed.   And, after discovering that without him, Apple had no clue how to make the iPhone 5, Steve Jobs moved on as well.

Finally, the absolute proof that the Mayans are right (and that we shouldn’t buy any green bananas)… Kim Kardashian reportedly made $65 million in 2011. “Jersey Shore’s” TV princess Nicole “Snooki” Polizzi got $32,000 to lecture to students at Rutgers University… which would pretty much guarantee the end of the world — or at least the end of American “culture”.

Not to be outdone, global stock markets saw $6.3 trillion (12.1 percent) in value wiped out in 2011 thanks largely to the European debt crisis, which agitated markets for most of the year.  Domestically, this past year was filled with problems whose origins can be traced to the impact of the burst in the credit bubble in 2007 and the Great Recession that has followed.  From what we see now, the markets have not yet cleared the wreckage: in 2011, the S&P 500 was virtually unchanged on the year; while blue-chip European companies fell 11 percent; Japan’s Nikkei index lost 17.3 percent; and strangely, the Dow Jones Industrial Average, finished up 5.5 percent at 12,217.56 (which left many of us scratching our heads).      In general, investors and professional portfolio strategists grew weary of the massive swings in stock market indices especially in the absence of any clear indicators to help position holdings for the next big move.   There was a huge amount of activity, projecting and “noise” for virtually no net gains.

It probably doesn’t make you feel any better, but, the “Sage of Omaha”, Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., lost about $2 billion in 2011.  The billionaire investor, who has a record of beating the market when stocks fall, oversaw a 4.7 percent decline last year.   It was only the second time since 1990 that the firm underperformed an S&P 500.  “There’s going to be a big asterisk by this year,” said David Rolfe, chief investment officer of Berkshire investor Wedgewood Partners Inc. “In tough markets it’s a strong performer. But, there’s no doubt it has broken the mold this year,” he said in an interview last month.

One of the most important responsibilities of my job is to become informed and, in turn, to communicate to you, my valued clients and friends, about the issues and trends that could impact a peaceful and secure retirement.   I hope you find my bulletins and blogs useful and entertaining.  They are on our website and we encourage you to share them with friends and potential new clients.  We’re looking forward to ramping up our efforts in this area during the coming year.   As always, I will dedicate myself to refining ways we can protect and preserve that which you have entrusted to me; and have sacrificed greatly to create.

I think we all know that 2012 will not be without its share of challenges.  But, if we all “hang in there together,” I’m certain we’ll find our share of comfort and joy in 2012!

 

 

 

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