3 Ideas for 2010

On our show this coming Sunday, we will both give 3 investment ideas for the coming year  and then post them to the website.
Yesterday the market sold off (Dow down 130 points) as the dollar got stronger. It was the biggest selloff in a month or so and woke many traders and investors out of their eggnog induced holiday stupor.
This is the time of year for investors to be assessing tax liability, reviewing asset allocation and finalizing charitible contributions.
Washington seems locked in cross currents of activity and inertia. Health care debate rages on - change is needed but will we get improvement with that change?  The Copenhagen climate change conference is concluding as 12-24 inches of snow is slated for DC this weekend. Environmental issues need to be addressed without the hysterical push that sometimes accompanies this debate. Gas prices have once again pushed against $3 per gallon with rhetoric for reducing foreign oil dependance outweighing the action. Paralysis in Washington is generally good for the markets BUT at what point will it be bad - then worse for the country.
We feel the market has reached an inflection point and is caught in inertia like Washington, Copenhagen and our energy policy. It doesn’t have the commitment to go higher (at this point) nor is there any reason to go lower in the face of interest rates at such low levels.
We believe that the resolution will be to the upside in 2010 but not without more anxious moments like we experienced yesterday.
Merry Christmas, Happy Holidays and New Year. However, you choose to celebrate this time of year- enjoy your family and friends.

This entry was posted on Friday, December 18th, 2009 at 9:04 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.