After 5 days of losses, US indices closed the last day of 2012 very strong, with a deal on “fiscal cliff” almost certain now.

Despite weak economic growth and investor worries about the sustainability of government debts, 2012 was a pretty good year for US equity markets: Nasdaq +15.91%, S&P +13.41%, Dow +7.26%.

Especially the second half of 2012 market performance was great with only a few bumps to stop the bullish trend. In particular, Jan/Feb/March were up, April/May down, June to September up, October down and November/December up.

The 2 first months of the year were the strongest, while May was the biggest loser.

Among S&P sectors, financials was the strongest (+26%) and Utilities the weakest (-3%).

Bank of America was the top gainer on the Dow (+108%).

In comparison, 2011 yearly performance of US equity indices was almost flat.

Petros