The book is closed on 2010 and what a year it was! The final numbers are in: the Dow Jones Industrials gained 11%, the S&P 500 gained 12.8%, and the Nasdaq gained a whopping 16.9%. Congratulations to all of the bulls out there.
So how will equities fare in 2011? Could there be an encore performance in stocks? In my humble opinion, for the markets to have a repeat performance, we must see the unemployment rate come down significantly. This means corporations must be willing to hire and expand, enabling the consumer to start spending again. These three catalysts are essential for a meaningful economic recovery and to keep the markets appreciating.
Have a great trading and investing new year.