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What to Expect from the Financial Markets in 2012
CNBC.com | January 18, 2012 | 09:48 AM EST

stocks will rise 5 to 8 percent.Sure, we have problems, but the rest of the developed world has bigger issues and capital will continue to flow to, as one of my sources calls it, “the least dirty shirt in the laundry.” It won’t be a boom year for stocks, but continued solid earnings and expectations for a change in the White House should push equities higher. (Last year, I predicted the Dow Industrials would rise 8 to 10 percent and it's still possible.) — Brian Sullivan

  • Chinese stocks will outperform. With the property market offering deadbeat returns and interest rates remaining low (as the government tries to ease the pain of a housing correction), investors will finally return to stocks. After a three-year slump, Chinese equities will rally as investors realize the virtue of buying into a market currently trading at just 11 times earnings. — Deepanshu Bagchee
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