(Reuters) - Stocks should score a second straight year of gains in 2010 as an economic recovery brightens the profit outlook, extending the market's rebound from the depths of a punishing financial crisis, a Reuters poll showed on Wednesday. Most of the upside is forecast for the first half of the year as investors bet on a more stable economy boosting sectors like technology, industrials and materials.The second half of 2010 will be more muted as investors seek clarity on when and how the U.S. Federal Reserve might tighten monetary policy by raising interest rates or draining the financial system of excess liquidity, or both.The survey of about 40 analysts at top Wall Street dealers, brokerages and fund managers taken over the last week showed a median target of 1,208 for the benchmark Standard & Poor's 500 index at the end of next year.
http://www.reuters.com/article/idUSTRE5BF2TE20091216
2010: A bounce into the unknown
Outlook marred by risks in unwinding of central banks' easy money measures
(MarketWatch) -- Still high on the sugar provided by ultra-low interest rates and the massive amounts of liquidity provided by central banks, stocks could climb steadily in the first half of 2010, according to the predictions of some major Wall Street banks and analysts. But beyond that time frame, many strategists color their views with caution. A big question remains as to what will happen when the Federal Reserve and other major central banks remove the massive amounts of money they injected to rescue the financial system and the global economy. Ablin expects U.S. stocks, as measured by the broad S&P 500 index /quotes/comstock/21z!i1:in\x (SPX 1,126, +5.89, +0.53%) , to gain another 15% in the first half of the year, thanks to the fuel provided by government and central bank money.
http://www.marketwatch.com/story/us-stocks-seen-rising-in-early-part-of-2010-2009-12-22
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