From the November 2009 issue of Investment Advisor • Subscribe!

Asset Allocation

Behind the Numbers, with Gail Dudack

Taking a contrary position to a lot of the people she speaks with, the principal of the Dudack Research Group describes her current outlook as "short term cautious and longer term optimistic." She says her official view is that the market hit a ceiling by mid-October and is "likely to go sideways through the rest of the year," she observes. "That to me is the best path for the market because it would mean less of a rollercoaster ride for investors." Her expectation is that the economy will continue to grow in 2010, but she does have concerns about some of the aggressive growth numbers and earnings numbers she's seen predicted. "Market performance coming out of a recession is always very good. The problem is that we've already exceeded those averages. We're really already seeing the best performance typically seen in the first six months," Dudack notes. "Too much, too soon leaves you a bit vulnerable early next year to a correction."

See the entire November Asset Allocation page here.

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