Some Common Cents for January 3rd 2014 Happy New Year!!!

In trying to come up with a worthwhile forecast for 2014, I kept coming back to something I have said over and over again throughout the years: “the US economy and markets rarely fall apart just because. There is almost always, if not always, some kind of shock to the financial system which precipitates declines in both.” By declines, I mean recession and 2008; I don’t mean 2% GDP growth and 0% in the S&P 500.

After all, the average person can tolerate a flat year in the markets, but few can stomach wild rides and the significant loss of principal. So, when people ask for a forecast, I believe them to really be asking: “Am I going to make a lot of money this year, or am I going to lose a lot? If you think I am going to lose a lot, what in the heck are you going to do about it bright boy?”…Read On…

The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.