{"id":1714,"date":"2012-01-11T13:41:11","date_gmt":"2012-01-11T21:41:11","guid":{"rendered":"https:\/\/www.wealthfront.com\/blog\/?p=1714"},"modified":"2022-01-11T17:12:46","modified_gmt":"2022-01-12T01:12:46","slug":"the-best-market-outlooks-for-2012","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/the-best-market-outlooks-for-2012\/","title":{"rendered":"Lessons from 2011 And Ideas For Investing In 2012"},"content":{"rendered":"<p>The first week of the New Year was marked by plenty of stories that talked about the outlook for the capital markets in 2012.<\/p>\n<p>Investors should ignore most of them. If you need evidence of <em>why<\/em> you should ignore most of them, look back to the turn of 2011, when nine out of 10 stock market strategists <a title=\"Barron's 2011 Market Outlook\" href=\"http:\/\/online.barrons.com\/article\/SB50001424052970203319504576019660899709744.html\" target=\"_blank\" rel=\"noopener\">polled by <em>Barron\u2019s<\/em><\/a> predicted US equities gains of 7-17%. Yikes. Glad you didn\u2019t shift all of your money into stocks based on <em>those <\/em>predictions.<\/p>\n<p>The US stock market ended the year <a title=\"Bloomberg Businessweek on Actual 2011 Stock Market Performance\" href=\"http:\/\/www.businessweek.com\/news\/2011-12-30\/u-s-stocks-fall-leaving-s-p-500-virtually-unchanged-for-year.html\" target=\"_blank\" rel=\"noopener\">almost exactly flat<\/a>.<\/p>\n<p>If you are looking for some thoughtful pieces on how to invest the money we hope you will make this year, check out these three pieces:<\/p>\n<p><em>Business Insider<\/em>\u2019s Henry Blodget is picking up on a sea change in investing. An increasingly skeptical public is figuring out that the only winning investment strategies available to average Americans are based on a low-cost, diversified portfolio, as he writes in this piece, <a title=\"Business Insider on smart investing and financial wellness\" href=\"http:\/\/www.businessinsider.com\/finally-some-excellent-investment-advice-2011-12#ixzz1iQ8MQAxT\" target=\"_blank\" rel=\"noopener\">Finally Some Excellent Investment Advice<\/a>.<\/p>\n<p>\u201cIn other words, if you want to invest intelligently, the first thing you should do is ignore 99.9% of what you hear in the financial media\u201d about how you can be successful at picking stocks and forecasting the market.<\/p>\n<h2><a title=\"Upfront Blog on rebalancing lessons from the Yale model\" href=\"https:\/\/www.wealthfront.com\/blog\/rebalancing-lessons-yale-model\" target=\"_blank\" rel=\"noopener\">Rebalancing Lessons From the Yale Model<\/a><\/h2>\n<p>Blodget recommends just two things: a diversified portfolio, and regular rebalancing.<\/p>\n<p>We also liked this <a title=\"Reuters on smart investing and financial wellness\" href=\"http:\/\/blogs.reuters.com\/felix-salmon\/2011\/12\/28\/why-its-hard-to-invest-sensibly\/\" target=\"_blank\" rel=\"noopener\">piece<\/a> by Felix Salmon about investing in 2012, which ends on this note:<\/p>\n<p><em>In general the world of financial services is designed to extract as much money from you as possible, by offering as many unnecessary products and bits of advice as it can. Which is why following Blodget\u2019s advice is much easier said than done.<\/em><\/p>\n<h2><a title=\"Upfront Blog on rising investment advisor fees\" href=\"https:\/\/www.wealthfront.com\/blog\/beware-rising-investment-advisor-fees\/\" target=\"_blank\" rel=\"noopener\">Beware Rising Investment Advisor Fees<\/a><\/h2>\n<p>And finally, Burton Malkiel, a Princeton economist wrote <a title=\"Wall Street Journal 2012 Market Outlook\" href=\"http:\/\/online.wsj.com\/article\/SB10001424052970203462304577134772867322582.html?mod=googlenews_wsj\" target=\"_blank\" rel=\"noopener\">Where to Put Your Money In 2012<\/a>, a rundown of the prospects for many different asset classes.<\/p>\n<p>He also takes a rational look at the undercurrent of fear that is beginning to bubble up regarding \u2013 what else \u2013 a real estate and construction bubble in China.<\/p>\n<p>He ends the piece this way:<\/p>\n<p><em>Whatever the specific mix of assets in your portfolio at the start of 2012, you would do well to follow one crucial piece of advice. Control the thing you can control\u2014minimize investment costs. That is especially important in a low-return environment. Make low-cost index mutual funds or ETFs the core of your portfolio and ensure that any actively-managed investment funds you purchase are low-expense as well.<\/em><\/p>\n<p>We could not agree more. We suggest making 2012 the year to examine costs and fees in your investment portfolios.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first week of the New Year was marked by plenty of stories that talked about the outlook for the capital markets in 2012. Investors should ignore most of them. If you need evidence of why you should ignore most of them, look back to the turn of 2011, when nine out of 10 stock [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":7220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1315,1282],"tags":[1392,1393,1298,1296,1634,1581,1292,1635,1592,1307],"coauthors":[84],"class_list":["post-1714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-insights","category-investing","tag-burt-malkiel","tag-burton-malkiel","tag-etfs","tag-fees","tag-felix-salmon","tag-henry-blodget","tag-mutual-funds","tag-princeton","tag-yale-endowment","tag-yale-model"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Investing Lessons from 2011 | Wealthfront<\/title>\n<meta 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