Newsletter guru Jim Oberweis says that an improving economy and the fact that this is an election year bode well for stocks in 2012 — and that many small-caps should do well regardless of what the economy does.
“In January the unemployment rate dropped to a three-year low of 8.3%. Even housing is showing a glimmer of improvement. Sales of existing homes climbed 5% from a month earlier, the third straight monthly increase,” Oberweis writes in his latest Forbes column. “Best of all, it’s a presidentialelection year. You can be sure that the Obama Administration will do everything in its power to continue these trends. So European crisis be damned, I’m optimistic for 2012.”
And even if the economy scuffles, Oberweis says that opportunities will present themselves among smaller stocks. “It should come as no surprise to readers that I am sticking to my knitting,” he adds. “Innovative small-cap companies will grow in spite of the economic cycle because they create new markets or take share from competitors.” He offers several picks, including Massachusetts-based IPG Photonics.