Legal Bill

Well, it isn't too early to start speculating for 2010.

Will we see the start of the recovery out of recession, or will we see the second drop of the "W" before the real recovery begins?

If you think we are in for a second drop, then have we truly seen the "bottom", or will the second drop fall below the previous lows?

If you think we are heading up, how steep will the incline be?

What investment is the safest bet for 2010? What will be the big performer? Is there a best-bet segment out there? What is it?

What should we run from? Can we see the dogs in advance? What are they?

2009 was interesting times. Will 2010 be interesting?

Lakersfan

2010 will be an interesting year. We have had two terrorist attacks on our domestic soil (Ft Hood and the one over Detroit) and another of a greater magnitude could create a lot of havoc in the markets. My concern is inflation - not if, but when. Congress has spent, or allocated to spend, so much money this past year that will, in my opinion, have a significant impact on the value (or lack thereof) of the $US. The Fed has kept rates down, unemployment is high, and credit is tight so there hasn't been a rapid increase in demand which has kept inflation in check. Manufacturing output, though starting to head north in many areas, is still well under capacity. So, based on this logic, it's probably not the best time to get into bonds. As an example, GNMA's have not been at a higher market value in recent memory. I personally follow the logic that diversification is the only way to go. That is, own no more than 4-5% in any one investment and I try to stay away from individual stocks. Again, just my opinion so take it for what it's worth. Many on this board may disagree with it.

MsPerky

^ I think almost everyone would agree that diversification is key to a healthy investment strategy. Of course the division of the pie changes with age and circumstance. And some of us are willing to take more risk than others. I don't think the financial market will recover significantly until the unemployment numbers improve. Unemployment has a ripple effect on the whole economy. Of course, political and economic events will have some effect in 2010, also. The market is driven by psychological forces. Confidence up - Confidence down - All these gurus can predict whatever, but let's face it - it's basically a cr-pshoot. That's why I limit my investments in the market, and still bank on real estate to give me my big returns over the long run.

boltonblue

I don't see the much happening in either direction in the economy.
We may be settling in around a new 'norm' of employment.

MsPerky

And, I should add, the threat of or worry about unemployment is a contributing factor, not just the unemployment rate itself.

OhioRacer

Deb, do you own properties other than the condo you live in? Is that what you refer to? Or are you referring to REIT's?

MsPerky

^ I do not, although I've thought about it. For now, my condo is it. I still consider it a very good investment, not just a nice place to live. Not so keen on REITs.

dlq04

The market has held better than I would have thought considering the disconnect between wall street and main street, given total unemployment is past 10% and where it's going has to start factoring in. Secondly, credit is very tight. And the dollar continues a downward trend. The best predictions are for a slow recovery. Sideways movement in the market will likely continue with the possibility of a second crash hanging out there.

OhioRacer

Except you can't eat your house.

RC - Ryder

^^ About my sentiments too, Dave. I do think Blue is right about new employment norms also. It's going to be a long haul regarding employment and an economic resurgence. The new norm may just be people being hired as temps and people having several temps jobs. There is still room for increased productivity in the existing workforce, and businesses are going to be slow to take on full timers. Too much uncertainty and lack of a confident business climate right now. Credit will stay tight. Foreclosures are still a major problem and we're promoting a whole new bubble by encouraging Fannie and Freddie to subprime lend all over again. Plus, there is this looming commercial real estate foreclosure bubble. I don't see anything positive happening until the administration unfolds its hands and lays down a long term recovery plan, that makes sense to those who hire.