2012 has a long run and it has many challenges and obstacles to interface. Current period already reaches Q3 and it has special meaning on market. The meaning will on actions taken by the Federal government in US, and how it impacts to market and how market will response on it. The US government already issues that they are going to make economy stimulation by certain policies on monetary actions including actions on mortgage backed security, interest rate, global economy, commodity markets, and equity. This is a lot to handle and we must be wondering how market would respond on this.
Everyone is expecting that the market will respond in quick and fast progress positively. Federal Government already decides to keep the interest rate low at least until 2015. This is good news for the society. They will draw better response on job market and transaction as well. However, we should also calculate how many failures on commodities and other fields already made. Several programs are planned to be launched very shortly, and the government will keep giving stimulus to the economy. Literally, government states their positive optimism about the economy. This can be a sign of good news before the year ends.
After this action, several people predict things and most of that are positive. Experts predict that stocks will go up. This prediction already moves the market. They also believe that while bonds are getting up, dollar will be down. Among the entire prediction, the good news lies on hard assets progress. Hard assets here include gold and oil. Gold will go up but it can give high inflation down as well. Meanwhile, oil condition will be infected by other factors as well like politic situation. However, we may make good result on property business as well. It tends to rise.
The last action is made on special purpose as well. They want to make the unemployment rate gets down after years taking high position. This condition needs to be solved or it will initiates poor economy recovery. However, if the entire policy works well, people will tend to borrow money as they get low interest rate. They may spend the money to buy products and services provided. This will encourage the business. However, we can really expect good things because we have optimistic prediction on gold, and also low interest rate. This should be helping the entire condition even though just small.