By: Jeff Cox CNBC.com
From the unbridled despair of 2008 to the only-somewhat bridled optimism of 2009, what a difference a year makes on Wall Street. And so it goes into 2010. Most analysts are offering upbeat forecasts for stocks, though tempered with a healthy dose of what-ifs: whether housing ever does get back on track; whether the Fed raises rates too soon; whether the profligate government spending catches up with the economy and thwarts the nascent recovery. And, most ominously, whether unemployment continues to prevent the consumer from goosing the economy.
Despite the lingering fears, a return to an armageddon-like scenario is being almost wholly dismissed and investors are enjoying the healthy profits that 2009 offered. This year's 19 percent stock-market profit contrasts handsomely with the nearly 40 percent loss of 2008.Positive GDP growth—with some estimates as high as the 4 percent range—coupled with continued help from Washington is seen as a solid barrier against fears of a double-dip.Analysts at Bank of America-Merrill Lynch are calling it the popping of "the equity pessimism bubble."
http://www.cnbc.com/id/34510786
Investors Will Return to US Markets in 2010: Expert
By: Krystina Gustafson Special to CNBC.com
The Federal Reserve's pledge to keep interest rates at near zero for an extended period means U.S. markets will continue to rise in early 2010—and asset bubbles and a shaky world economy will cause some investors to pull out of emerging markets, said Eric Ross of Watch Harbor Asset Management. He and Brian Daley of Conifer Securities offered CNBC their outlooks for next year."I think the worries that we have are really the rest of the world's starting to fall apart economically, particularly the euro zone," Ross said.
As the U.S. market rises, the dollar will continue to weaken, and commodities will head higher, Ross said. And although gold isn't his favorite commodity, it is a good way to play the weak dollar, he said. Ross predicts January's earnings season will be better than many expect, with technology leading the pack. But Daley said investing in equities will still be stock-specific in 2010.
http://www.cnbc.com/id/34514860
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