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February 01, 2010 at 02:00 AM
Every January, just after the turn of the New Year, Investment Advisor’s editors pick the brains of our Asset Allocation panelists, asking for their projections on the markets and the economy for the year. A number of their predictions are highlighted in the first table below, while the second compares projections made a year ago with the actual results.
When asked for his assessment of the U.S. economy and the financial markets in 2010 Standard & Poor’s Sam Stovall believes global investing will be the best source of outsized returns in 2010. As for the industry groups that will perform best in 2010, Stovall lists integrated oil and gas, diversified financial services, and “hypermarkets and Super Centers,” such as WalMart.
Gail Dudack, Dudack Research Group concurs with Stovall that global investing will be the best place to find alpha this year, but suggests doing so “more selectively.” She thinks the high flyers this year will be technology–both service and semiconductors–and healthcare, including service providers and generics. As for her biggest fear in the New Year, Dudack points to the U.S.’s “massive debt.”
LPL’s Jeffrey Kleintop is also looking to technology in 2010, but information technology. He also likes industrials and is avoiding utilities and telecom. Kleintop is not looking overseas for outsized gains and thinks that high-yield bonds are a better bet.
For Mark Balasa and the Alpha Group global investing is the way to go, with consumer discretionary and energy being the sectors to watch while avoiding healthcare.
