January 2010 - AIA Advocate for Absolute Returns

The AIA "Advocate For Absolute Returns", an on-line publication of The Association for Investor Awareness, Inc., tracks market trends, industry news, the SEC, global trade and finance and Washington developments for you because they affect your investments. But who doesn't? Many sources simply report these issues as abstract facts.

We feel that's not enough. The AIA Advocate's job is to warn you of what's important and how these developments translate to ground-level forces and threats that directly affect your wealth as well as your current investment opportunities. Not just information, but information you can use. Until next time…

  • Association for Investor Awareness - Week of 01/14/2010

    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.