WHAT DOES INVESTMENT LANDSCAPE LOOK LIKE FOR 2012?

   As an investor, you know that 2011 was a somewhat “choppy” year, with the financial markets going through many ups and downs. So what can you expect in 2012?

As baseball Hall of Famer Yogi Berra is quoted as saying: “It’s hard to make predictions — especially about the future.” And these words are certainly applicable for anyone who would like an accurate forecast of the investment climate.

Yet we do know of some factors that may affect your portfolio in the months ahead. Here are a few of them:

• Strong business fundamentals — This past year, all the noise about the debt ceiling debate, the size of the U.S. deficit and the European financial situation tended to drown out some fairly good news: U.S. businesses’ balance sheets were strong for the most part, borrowing costs remained low, and corporate profits were good — and corporate profitability remains a key driver of stock prices. Heading into 2012, these fundamentals continue to look positive, which may bode well for investors.

• Europe’s debt crisis — Greece’s economic problems made a lot of news in 2011, but they weren’t the end of the story in Europe, as major financial difficulties also face Italy, Spain, Portugal and Ireland. It’s by no means clear how these problems will be resolved, so don’t be surprised to see them lead to intermittent, if short-lived, shocks to the markets.

• Election-year patterns — As you’re well aware, we’re voting for president in 2012. But you might be surprised to learn that the S&P 500 index has shown negative returns in only three of the last 21 presidential election years. Coincidence? No one can say for sure — and at this point, no one can say if this pattern of positive returns will continue during this election year. Still, it’s an interesting phenomenon.

    So there you have it: the good, the bad and the quirky. Take them all together, and you still may not be able to foresee what will happen with the markets this year, but you’ll have a lot to think about. But instead of trying to predict what will happen in 2012, you may be better off following these tried-and-true investment strategies:

• Diversify your holdings. By spreading your money among a wide range of investments, you can reduce the effects of volatility on your portfolio. Keep in mind, though, that diversification, by itself, can’t guarantee profits or protect against loss.

• Don’t ignore your risk tolerance. If you worry excessively about market fluctuations, you may have too much risk in your portfolio, which means you may need to make some changes.

• Always look at the “big picture.” Financial markets will always fluctuate. But if you can keep your focus on your long-term objectives, and make decisions accordingly, you can avoid overreacting to short-term events.

Like other years, 2012 will bring with it periods of both turbulence and smooth sailing. But by making the right investment moves, you can still chart a course that can allow you to move ever closer to your future goals.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Linda  Ferreira

Financial Advisor

Edward Jones

492 Winthrop St., Unit 1

Rehoboth, MA  02769

(508) 336-4606

February 2012

SATURDAY

FEBRUARY 11, 2012

Helping Hands Food Pantry

Drop-off Site

9 AM to 12 NOON

American Form

513 Winthrop Street (Route 44)

Rehoboth, Massachusetts

NO MEETINGS

SCEDULED FOR FEBRUARY

UPCOMING EVENTS INCLUDE:

Annual Roadside Clean-Up

Candidate’s Night

Latest Job Reports

      Statewide, the December seasonally unadjusted unemployment rate was 6.5 percent, up from 6.4 percent in November. Over-the-year the statewide rate was down 1.5 percentage points from the 8.0 percent rate recorded for December 2010. All twenty-two labor area rates were down over the year.

     The seasonally adjusted statewide December unemployment rate dropped to 6.8 percent from the November rate of 7.0 percent, and was down 1.5 percentage points from the 8.3 percent rate recorded in December 2010. The statewide seasonally adjusted jobs estimate released on January 19th showed a 6,200 over-the-month job loss.

     The unadjusted unemployment rates and job estimates for the labor market areas reflect seasonal fluctuations and therefore may show different levels and trends than the statewide seasonally adjusted estimates.

Taunton State Hospital Closure Announced

      Taunton State Hospital, a state mental health facility, will officially close on December 31. The opening of a state-of-the-art facility, the Worcester Recovery Center and Hospital, is scheduled for this summer.

     “We understand that this announcement will impact the community of Taunton,” said Governor Patrick.

     As part of the closure of Taunton State Hospital, 124 of Taunton State’s inpatient beds will be consolidated into the new Worcester facility. An additional 45 beds will be transferred to Tewksbury Hospital. As a result of this realignment, the total number of inpatient beds will be maintained at 626, DMH’s current capacity.

     There are currently 410 employees at Taunton State Hospital and 426 employees at Worcester State Hospital (the existing facility is slated to close in July), all of whom will have job opportunities at the new Worcester facility.

      The closure of Taunton State will not result in a reduction in workforce On the Taunton State Hospital campus DMH operates several residences for DMH consumers. This administration has made a commitment to keep these programs and the jobs associated with them in the Taunton area. 

      “We remain deeply committed to Community First,” said Secretary of Health and Human Services Dr. JudyAnn Bigby, “For that reason, this closure promotes our shift away from antiquated institutional facilities across healthcare settings toward an environment that emphasizes community supports for patients instead.”

     Patient transitions from Taunton State Hospital will occur in phases throughout the closure process. Patients will have choices, including transfer and discharge where appropriate, and family members will be involved as requested by patients. A clinician will work very closely with the patients throughout the decision making process. All patients will be transitioned from Taunton by the closing date of December 31.

Commercial Drivers Need Medical Certification

      On January 20, MassDOT RMV Registrar Rachel Kaprielian announced a new federal regulation that requires action by all 180,000 licensed commercial drivers, commercial permit holders, and new commercial applicants in Massachusetts beginning this spring.
      The new Federal Motor Carrier Safety Administration regulation requires all CDL operators to self-certify based on the type of commerce they engage in, interstate or intrastate, and whether or not they are required to obtain a US DOT Medical Certificate.  Drivers requiring a US DOT Medical Certificate must provide a copy to the RMV.  
      “A handful of states will begin accepting self-certifications at the end of January 2012. However, Massachusetts, along with over 30 other states, is now updating its processes and should be able to handle the influx of certifications this spring at RMV branches across the Commonwealth and via online transactions,” said Registrar Kaprielian.   
      This federal change aims to better enforce medical qualification and fitness standards of CDL operators and calls on states to add US DOT Medical Certificate information to the driver’s record for better access by other jurisdictions and law enforcement.  This will help insure that CDL operators are medically sound to operate and improve road safety.
      Failure to self-certify by January 30, 2014 will result in the downgrade of one’s Commercial Driver’s License to a Class D license. Self-certifications must be renewed at least every two-years. US DOT Medical Certificates must be kept up to date and on file with the Registry of Motor Vehicles. 
     CDL license holders should monitor the RMV website  for up to date information and the date when RMV will begin accepting certifications.  

$5.2 Billion in Local Aid for Cities and Towns

      Lieutenant Governor Timothy Murray announced more than $5.2 billion in state funding to cities and towns to be included in the FY2013 budget proposal. 

     That funding will include $4.1 billion in K-12 Chapter 70 education aid, marking the highest level of investment in education in the Commonwealth’s history. Local aid represents approximately 16% of the annual state budget. The increase in K-12 Chapter 70 aid will fully fund all school districts at foundation levels and ensure that all school districts will receive equal or greater funding than in FY 2012.

     As a result of the landmark municipal health reform passed last year, Murray announced more than $60 million in savings have already been achieved by more than 50 communities that have taken steps to address their health care costs in one of several ways: reaching agreement through traditional bargaining, using the new reform’s decision-making process to make changes, adopting the new local option reform, or scheduling local votes for the coming months. 

     Murray also announced a new proposal to increase the veterans’ homeless shelter reimbursement to cities and towns from 75 percent to 100 percent. The Fiscal Year 2013 budget includes $11.25 million in increased funding to enhance vital services for Massachusetts veterans and their families.

     There has been overwhelming response to the Administration’s Community Innovation Challenge (CIC) grant program. The CIC grant program offers $4 million in seed money to encourage and incentivize efficiencies and innovation in local service delivery. Since its launch in November 2011, the CIC grant program received 100 applications for funding, including initiatives to improve municipal performance management, modernize technology, implement energy efficiencies, consolidate regional schools and enhance regional service delivery. The budget includes $7 million for a second round of CIC grants to provide financial support for regionalization and other efficiency initiatives in local governments.