In This Issue:
The 2010 Economy May Be Stronger Than Expected
The Bull Market Should Have Longer Legs
Our Recommendations Remain Very Attractive
Earnings, Earnings, Earnings!
Interest Rates, Interest Rates, Interest Rates!
Stick With Short-Term Bonds & CDs For Now
Rental Real Estate Is Starting To Look Good Again
The Bottom Line This Week
Last
year the stock market reminded us of a Phoenix rising from the ashes. After
suffering a devastating 18 month slide, stocks began to rebound on March 9. By
the time the closing bell for the year rang on December 31, the Dow and the
Nasdaq were up 18.8% and 43.9% respectively. How nice it was!
It
is instructive to notice that most of the market's gains occurred while the
economic outlook was especially bleak. In fact, stocks started to turn back up
at the same time several economists said the outlook couldn't be worse.
Savvy
investors, of course, realized that if the economy could not be worse then the
slide must be over. Additionally, any change from 'worse' could only be
positive. As we reported at the time, smart money was starting to buy stocks,
and the rest -as they say- is history.
...