Review of the main factors that influence their investment during 2012.

There is no doubt that 2012 will be an interesting year for the global economy and for investors. The two major issues during 2011: the crisis of sovereign debt in the euro area and the slowdown in China, have been the less dramatic context for financial markets in 2012. In fact, some analysts now suggest that the euro will exist in the next 12 months, while most argue that it will, but not exactly the same way that currently exists.

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China:

Recent positive reports on China’s manufacturing PMI has calmed the nerves of investors to wait a year pretty hard for the Asian giant. However, it is likely that these nerves have calmed down for long if the euro falls into a severe recession.

Eurozone:

Comparing the latest unemployment figures for Germany and Spain will get a good overview of the differences in the economic health of the eurozone countries. And is that Spain has started the year with 22.9% of its population unemployed while in Germany the equivalent figure is 7.1%.

Elections:

It is also likely to continue projecting a strong political influence on financial markets in 2012 and elections in China in January, in Russia in March and in France, in April and in the U.S. in November. Will be difficult to find investments that serve as safe haven, but it seems that the U.S. dollar will remain the most popular choice among investors, as long as the Democrats and Republicans stop arguing on key issues.

Food and pharmaceutical industry:

To invest in 2012 will have to analyze the details of each sector. An example is the analysis of large supermarkets chains in the United Kingdom. We may see more value in actions of Morrisons supermarket as compared with the actions of Tesco, whose rapid expansion into new markets has impeded its recent growth. Of the major pharmaceutical companies GlaxoSmith Kline seems a safer bet than AstraZeneca, since the latter has one of its major patents expiring during 2012, Seroquel.

Automotive industry:

In emerging markets, Tata Motors in India seems a solid bet after announcing a 22% increase in sales in December 2011 compared to December last year. And is that car sales in India continue to increase due to expansion of the middle class. In fact Ford just announced it will invest $ 142 million in its factory in Chennai.

Nissan, the third largest Japanese car manufacturer, may have good run during 2012 as well. Last year its sales in India rose 44% in December. It is expected that the car market in India is the third largest in the world in 2020. Whatever the market that will invest in this brand new year, it is necessary to analyze the context and obtain data to help you plan your strategy carefully.Good luck for your investment in 2012. The above comments do not constitute investment advice and therefore we accept no responsibility for any use that may be made of them.