January is the time for predictions. The stock market is a favorite arena. Stock analyst Michael Browne of Sofaer Global Research has changed his stance on the U.S. stock market. Bank in March 2009, he accurately predicted the start of a bull move in stocks.
Now, however, he says the bull move is over and is recommending that investors take profits. When asked if he was bearish, he said: "Am I bearish? no, but I am no longer a bull."
Basically he doesn't see much growth in the US economy this year. Banks are withholding their lending, especially to small businesses. Without adequate capital business cannot grow and the larger economy cannot grow either.
Then there is much political uncertainty over bank regulation. Markets loathe uncertainty and tend to sell off for lack of definite actions.
Browne sees no inflation, no interest rate increases and slight improvement in the employment picture. Overall, he sees the economy as flat in 2010.
He favors, airlines, gambling stocks, specialist financials and luxury stocks.
How do you see the market shaping up in 2010?
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