In their December 15th 2012 edition, The Spectator, a weekly magazine published in Great Britain, offered the following observation in the article titled “Why 2012 Was the Best Year Ever”:
It may not feel like it, but 2012 has been the greatest year in the history of the world. That sounds like an extravagant claim, but it is borne out by the evidence. Never has there been less hunger, less disease or more prosperity. The West remains in the economic doldrums, but most developing countries are charging ahead, and people are being lifted out of poverty at the fastest rate ever recorded …We are living in a golden age.”
Whether you agree or not, this kind of commentary was scarce in the financial media outlets in 2012. They were too busy creating a buzz that seemed intended to cause us concern. Throughout the last year we have been reminded constantly of potential crisis both here and abroad. The first few words of the article very well could have read “It certainly did not feel like it.”
Yet, in spite of the emotionally charged environment, many equity markets around the world posted above average returns for the calendar year. Here is a link 2012 – The Year it Didn’t Happen to Weston Wellington’s (a Vice President for Dimensional Fund Advisors) summary of 2012.