Local experts share 2012 economic outlook

LYNN – Local financial advisers are hopeful the markets will grow in 2012, but differ on the pace of the economic recovery for the year.?I think the best is yet to come, as evidenced by the increased traffic at shopping malls, lines outside restaurants and the increased appetite for technology items,” said Marc Freedman, a certified financial planner and president of Freedman Financial, Inc., in Peabody.Thomas Riquier, a certified financial planner and president of The Retirement Financial Center in Danvers, said that the U.S. economy should be stable in 2012.?Domestically, next year, we should do OK in terms of the market being up,” he said. “There are good signs.”However, Riquier expressed concern about Europe which, he said, may fall into recession this year and at least one European nation could declare bankruptcy.?It?s not going to hurt us that badly, because for the first time in history, banks and dom-estic corporations have more cash on hand to sustain any adverse economic repercussions from Europe going down, if it did go down,” Riquier said. “We have that resilience.”But Mark Singer, certified financial planner and president of Safe Harbor Retirement Planning, Inc., in Lynn, said that the U.S. is not out of the economic doldrums.?This economy, this jobless recovery, has a long time to go to fill us with confidence,” he said, adding that it is confidence to do anything economically, including investing and buying.Both Freedman and Riquier said they think the local job and housing markets will improve this year.Riquier said that housing prices in the region are lower than that of the overall nation, but many potential buyers are hesitant.?If you can get a down payment, and you have a good job, buy it now,” he said. “Mortgage rates are at historic lows. ? Consumer confidence has dropped, but it?s an excellent time for a home buyer to be buying.”Freedman, who will have a finance radio show on 96.9 FM on Sunday afternoons starting Jan. 22, said he foresees real estate prices remaining flat this year.?I think it?s a great buying opportunity for those that are purchasing, he said. “And those who are sellers, I think the worst is over.”Singer, who recently wrote “The Changing Landscape of Retirement,” said consumers have lost equity in their homes over the last few years. As a result, their property value has gone down, or they can?t make payments toward their mortgage debt – or both.?People?s emotional states and how they benchmark their sense of self-worth, and therefore their self-esteem, really oftentimes is tied to how much equity they have in their house,” he said. “Because for so many, it?s their largest asset.”In the year ahead, Singer advises that people should separate their emergency cash reserves from their investment portfolio.?Do as much as you can to not dip into your investment portfolio, so you can let it grow over time,” he said.Freedman recommends putting at least six months? worth of cash to cover day-to-day expenses in reserve. Retirees, meanwhile, should stockpile enough cash to potentially last them three years.?That way, you don?t have to worry about volatility that presents itself,” he said.Riquier said it is a good time to be investing in the stock market because prices are down. He advocates for one?s stock portfolio to have a mix of domestic companies as well as those in emerging markets, like Latin America. In addition, Riquier said consumers should put money in technology, commodities and high-quality, short-term bonds.?In the future, we?re going to look back in 2011 and say, ?Wow, there was a fire sale on stocks,?” he said.Riquier also had some words of wisdom that transcend the constantly changing economy.?It?s not your financial success when things go up,” he said, “but how much you don?t lose when markets go down.”Sarah Mupo can be reached at [email protected].