Wealth Daily's 2010 Stock Market Forecast
Wealth Daily's Weekend Edition
Welcome to the Wealth Daily Weekend Edition...
This year will go down as the year of firsts.
No one thought the stock market could get as bad as it did in the early days of 2009. We were on the brink of a modern-day depression, with unemployment nearing double digits. It wasn't until the Fed lowered rates to zero — flooding the economy with dollars, weakening the dollar, super-charging commodity trader portfolios — that the Dow flew...
What happened after the brink was nothing short of amazing.
The Dow soared off 6,500 lows to more than 10,500 just months later.
Yet, while not everything was as rosy as we were told, the market didn't care, opting to shrug off any and all negativity. It was nothing short of amazing to watch.
Yep, 2009 — "the year of firsts" — has seen its share of bullishness with shades of bear.
For the first time in history, gold rallied above $1,100 an ounce. And, for the first time in our nation's history, we swore in an African-American president.
We watched the Bernie Madoff scandal unfold, and then hundreds of people lost thousands of dollars as a result. We watched the Fed pump billions into the pipelines, keeping major banks afloat, while others were closed. We watched the FDIC disaster unfold... global upheaval and defaults... the Miracle on the Hudson... the fight over health care reform... the death of Michael Jackson... and so much more.
But as we say goodbye to 2009, what lies ahead for investors like you and me?
Let's hear it from my fellow analysts and editors here at Angel Publishing:
Steve Christ, founder and editor of The Wealth Advisory, for one, believes: "The wave of liquidity that has floated the markets off the bottom will continue into the first half of the year. That's why I think we can still reach new 52 week highs on the S&P. The problems begin in the second half when those same policies start to tighten. At that point the market mood will likely change."
As for myself, managing editor for Pure Asset Trader (39 for 41 since February 2009) and Options Trading Pit — while I'm bullish on the first few months of 2010, I have my doubts on the stability of our current rally. I'm calling for further downside, as Option ARM resets are met with higher unemployment, further housing glut on the market, and the death of the consumer. That's not to say there aren't hidden bull markets out there. There are, and we'll find them, as we have in these pages of Wealth Daily.
Global investor and managing editor of soon-to-be-launched Crisis & Opportunity, Christian DeHaemer sees opportunities outside of the United States, too. "Mongolia is the best positioned, most undervalued country to take advantage of the weakness in the U.S. dollar and the continued power of the Chinese economy," he says. "There are a number of new deals in coal, gold, copper, uranium, and rare earth minerals."
Says Keith Kohl, editor of The $20 Trillion Report: "For the first time in 40 years, the U.S. has managed to increase its oil production, yet there are only a few areas this growth actually happening. And as we move closer to an economic recovery in 2010, not only have oil prices found a new floor at $60 per barrel, but I think we could easily see oil break into triple-digits. That's why I believe the next wave of investments will come from the trillions of dollars that will be spent developing these new oil plays."
And if Keith is right, which I think he is, triple digit oil prices will lead to further calls for domestic drilling, especially in the Bakken region, where Pure Asset Trader and The $20 Trillion Report have profited heavily.
As for the alternative energy angle, Nick Hodge, editor of Alternative Energy Speculator, thinks it's best to bet "on the smart grid — and all it encompasses — which will be a sure bet in 2010. Energy-producing technologies like wind and solar have come-of-age in a big way, but lack the necessary infrastructure to make them a real game-changer. Because it reduces demand through efficiency and increases supply through transmission and smart devices — while requiring less capital — billions of dollars will be changing hands as electric infrastructure undergoes a major upgrade. As that happens, I'll be picking-off winner after winner for my readers."
As for Jeff Siegel, founder of Green Chip Stocks, "Despite continued market uncertainty in 2010, the energy crisis that is upon us will continue to breed new opportunities in renewable energy..."
Jeff feels the big winners will be Chinese solar manufacturers with close relationships to the Chinese government and U.S. manufacturing... Domestic geothermal companies with operational power plants and direct ties to DOE loan programs... Smart grid developers that have built strong relationships with the utilities over the past couple of years... High-performance battery manufacturers supplying batteries for electric cars and utility-scale generation projects... Chinese wind turbine manufacturers with strong U.S. presence... And domestic wind farm developers sending power to the California grid.
"In fact, there's one wind farm developer in particular that I believe will really start to take off on January 1 — when California's new renewable energy standard goes into effect," says Jeff. "The company's next project has already been valued at more than a half billion dollars, and its current operational project is generating revenue, and operates without a single penny of project debt!"
Green Chip International's Sam Hopkins says, "In 2010, one of two things will happen on the global clean energy scene: one, the competitive environment will heat up as hundreds of new companies push homegrown green power technology; or two, current major players will hang onto market share and ramp up their own R&D. In either case, Green Chip International readers will have a bead on where in the world the best renewable fuel and cleantech investments can be found."
And Chris Nelder of Energy & Capital says "Agricultural commodities will be hot. Climate change is putting millions at risk of starvation in East Africa and disrupting food production in much of the rest of the world, but God isn't making any more farmland. Gold will continue to be strong as the world tries to print its way out of depression. Energy will continue to outperform. Coal, natural gas, uranium, solar, wind, and probably next-generation biofuels will all be buys for 2010."
Plenty of differing opinions. But 2010 should be one heck of a year to be a trader. That's a promise — and we're more than ready to make some serious money.
I, for one, see a 2010 bull market in potash. Stay tuned for more in Options Trading Pit.
Best wishes for happy holidays and a wealthier New Year,
Ian L. Cooper
P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here.
We Were 100% Wrong on Bakken: We Admit It...
After 28 straight months of research, interviews, site visits, number crunching — and answering to critics — Wealth Daily analysts have come to terms with one thing about the Bakken oil formation. And that is... we missed the mark.
Regenerative Medicine Stocks: The Next Big Thing is Closer Than You Think
Wealth Daily Editor Steve Christ explores regenerative medicine and explains why this radical field is likely the next "big thing" for the medical world and investors alike.
A Modern-day Dr. Frankenstein: Medical Changes are Coming Fast
Wealth Daily reports: Not only is this company working on the cure to one of the deadliest diseases know to man, it's also following an enormously profitable trend in the biotech sector. Wealth Daily reveals this company in this new report.
Crisis Investing: The Only Stock Investing System That Works Every Time
Editor Christian DeHaemer explains why crisis investing is the only way to profit in the stock market.
This Crash is Far From Over: Do this One Thing and You'll be Fine
Sure, construction of new homes, helped by good weather, rebounded in November. And sure, the gain is a hopeful sign of a housing recovery. And yeah, sales have surged in recent months, as home buyers scrambled to take advantage of the first time home buyer tax credit. But Wealth Daily reveals why the crash is far from over...
Neighborhood Electric Vehicles (NEVs): Calling Out Green Fear-mongering
Energy & Capital Editor Nick Hodge takes a look at neighborhood electric vehicles (NEVs) through the eyes of two very different media outlets.
Tom Vilsack Biofuel: Clarification on the Tom Vilsack Biofuel Position
Green Chip Publisher Jeff Siegel reports: U.S. Agriculture Secretary Tom Vilsack recently told reporters that we should caution against blaming biofuels for higher food prices, stating that the food vs. fuel debate is based on the assumption that where we are today remains static relative to production.
Greenland Takes Control of Mineral Rights in 15 Days: Fortunes Will Be Made
On January 1, 2010 — for the first time in history — Greenland's $273 billion rare earth resource will turn over to a single company. We reveal how you can get in on the outfit that will control these technology metals... before its stock skyrockets and you miss the profit train.