(The Washington Times) The long-term outlook for the stock market is not good, and here is why. For the past 100 years, there has been an inverse relationship between changes in the size of government and the growth or decline in the stock market.
sell S&P 500 SPDR (SPY)
“Lebanon’s army said on Tuesday it fired anti-aircraft rounds at four Israeli warplanes which flew at low altitude over south Lebanon.”
Dec. 29 (Bloomberg) — The Standard & Poor’s 500 Index will collapse below its March lows as an expected rebound in economic growth fails to materialize, according to hedge fund manager Eric Sprott.
sell S&P 500 SPDR (SPY)
The financial and commodity markets will be influenced by a number of major events in 2010. Central banks are ripe to exit a period of unprecedented monetary ease, governments in Japan, Europe, and the U.S. will issue historically high levels of debt, parts of the Emerging World face real estate and equity market bubbles, and the U.S. will hold important midterm elections, which could impact consumer and business confidence. Furthermore, the euro will face a test of its reserve
One article of many showcasing the importance of defense co’s…
At a time of the year when ho-ho-ho is the catchword, the first six months of the US economic recovery look distinctly ho-hum following the latest reports.
“The returns will be fairly negligible,” Mr. Munton said. “The companies have the opportunity to recover everything they spend and to get a wafer-thin profit on top, but this is really an opportunity to get in to Iraq.” Iraq ranks third in the world in terms of proven reserves, behind Saudi Arabia and Russia but ahead of Iran, with reserves of 115 billion barrels and possibly more, Mr. Munton said, quoting estimates by his own firm.
A suspected terrorist’s attempt to blow up a U.S. airliner may override privacy concerns and intensify a push for full-body scanning equipment at airports.
GS: “Earlier this month, we announced our updated forecasts and projections through 2011. We believe global growth will return to above trend in 2010 and 2011, led by strength in the emerging markets and, of course, in the BRICs in particular. Although we are bullish on growth, we expect inflation generally to remain in check. ”
buy India Fund (IFN);
Morgan Stanley: “Fundamentals will matter: We expect correlations will weaken into and through 2010. Fundamentals will matter, more so than they did in the liquidity-induced rally of 2009. Investors, as a result, should be much more discriminating in 2010. We want to own commodities with tight balances.”
UBS: The euro has fallen sharply towards our three month target of 1.40 against the dollar. But investors should continue to sell the single currency for seven key reasons.