Bank of America/Merrill Lynch has released its "Ten Themes for 2010" and this one really runs the gamut.
MarketFolly has the report.
First, the list:
- Government balance sheet risk
- Rising taxation
- Alternative yield strategies
- Financial sector rehabilitation
- Corporate cash flow beneficiaries
- Rising global growth
- The emerging market consumer
- Commodity price inflation
- The return of active management
- Alternative energy
A few of these are quite obvious. With the federal deficit where it's at now, taxes will undoubtedly be increased.
Market Folly: From Bank of America Merrill Lynch comes investment strategy in the form of '10 themes for 2010.' Keep in mind that these represent their opinion so take everything with a grain of salt. They feel that next year will be "a genuine watershed" in that it will reveal whether or not this 'recovery' is real or whether the fundamentally drawn out weakness typically associated with bear markets will rear its ugly head.
Their Research Investment Committee thinks that the printing of money through quantitative easing and record budget deficits will help the country on the road to recovery but think inflation will remain low throughout 2010, thus providing a bullish environment for stocks and commodities. As with many other market pundits, they feel emerging market demand will fuel commodities (especially gold). On the contrary, they dislike government bonds.
Read the rest of this entry >>>
