Thursday, December 22, 2011

Five Things Investors Have to Worry About in 2012


According to Market Insider they are:

1.Conflict with Iran: The U.S. and other Western countries are moving to put economic sanctions on Iran for its nuclear weapons program. Tensions are rising and analysts worry about scenarios where Israel could take action against Iran, or that it could take some action to reduce the flow of world oil through the Straits of Hormuz, a key shipping channel between Iran and Oman. Either way, the worst case scenario drives oil prices higher, hurting the global economy and financial markets.

2.North Korea’s New Kim: Kim Jong-un, the youngest son of Kim Jong-il, took over after his father died last Saturday. There is little known about the 28-year-old leader, but he now heads a secretive and closed off country with an advanced nuclear weapons program. There are reports he will head a ruling group that includes his uncle and the military.

3.Iraq Civil War?: Just a day after the U.S. pulled out of Iraq, the country’s Shiite dominated government ordered the arrest of Sunni vice president Tariq al-Hashimi, accusing him of running death squads and assassinating public officials. The fragile coalition government is at risk of dissolving, creating more instability in the Middle East and an unknown for oil supplies.

4.Pakistan-U.S. alliance weakens: The bristly relationship between the U.S. and Pakistan worsened after U.S. and NATO troops accidentally killed Pakistani soldiers on the Afghanistan border. The relationship is critical to the U.S. efforts in the war on terror and in keeping balance in its relationship with neighboring India, a U.S. ally. Recent rumors of a coup were quashed when President Zardari returned from medical treatment in Dubai.

5.Russian Election Uncertainty: Prime Minister Vladimir Putin’s coalition lost its majority in parliamentary elections that were criticized for fraud. The question is does the Russian populace want the strong armed leader to return to his position as president in the March 4 election. A shift in the center of power in Russia, viewed as unlikely as of now, could have impact on its dealings with the rest of the world, and has implications for energy, as Russia is the world’s largest oil producer..

There’s more at http://www.cnbc.com/id/45752402

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