The Wall Street Journal picked its 2012 winners and losers after a year that showed steady gains with low volatility amid worries and uncertainty like the fiscal cliff, European debt and China’s slowing growth. The S&P (counting dividends) was up 15%, the DJIA 6%, NASDAQ almost 14% and junk bonds 15.6% — led by the Fed keeping interest rates low and pushing investors toward riskier stocks. Contrarians betting on the stock markets of Greece, Portugal and Ireland fared well, as did those who invested in financial, housing and consumer stocks — even with relatively weak corporate earnings.
Looking ahead, the WSJ doesn’t see any cheap markets, and warns that returns may be artificial because of the Fed’s monetary policy. Yet, who’s brave enough to fight the Fed?
