New Year Trading’s Off to Good Start: Will it last?
Investors got a New Years’ boost out of the latest U-S Economic indicators showing solid gains for Construction Spending and Manufacturing.
And that’s all it took to trigger a solid rally on the opening day of Wall Street 2012 trading.
But, what does it all mean to our bottom line and should we expect this year to be much better than than 2011?
Local taxi driver Eilene Taylor says “I think it’s going to be better”
She worked as a restaurant manager last year.
But the hard economic times took their toll on her business.
That’s why she’s now driving a cab and happy to see 2011 in her rearview mirror!
Taylor adds “The worst..2011 was horrible. Tourists are coming back and spending again, so I think 2012’s going to be better.”
Eilene’s bullish on the new year because of the continuing gains she’s seeing out of local tourism.
Occupancy and room rates here are seeing steady gains according to the Greater Miami Convention and Visitors’ Bureau.
Improving Consumer confidence and overall spending gains helped make this years’ holiday season better than 2010.
December auto sales were the 2nd best for the year. And heavy manufacturing’s at a 6 month high.
Still, some financial analysts warn 2012 may face some of the same old problems that held back the economy last year.
lane Jones of Coral Gables’ Evensky & Katz warns “I think financially, people should remain conservative…it’s a good time to check spending and investments and growing savings. It’s the time of the year for all the standard planning questions.”
And that’s why Sweetwater Resident Donnye Alvarez is still worried about needing to boost his bank account in case the economy slows down again. Alvarez adds ” I think 2012 is not looking good”.
There are still several major issues clouding the forecast over where the local and national economy’s heading.
Some economists warn Europe could still see a double dip recession, fuled by the continuing debt problems facing several major national economies.
Mideast tensions are rising again, this time out of Iran, and that’s already raising gas prices here and around the world.
And finally there’s U-S Politics, with nobody able to predict what’s going to happen in the fall elections.