So, the Dow Jones Industrial Average is set to finish 2010 up 11% while the S&P 500 will close the year up a lucky 13%. However the "real economy" is barely trudging along at a drunken snail's pace. This recovery is officially the weakest in the post-war period and to many people across America the "Great Recession" has never truly abated. The chart below (which I cribbed from The Atlantic) illustrates just how greatly the rate of economic improvement is dissipating:
Th outlook for 2011 is overwhelmingly bullish with many "experts" calling for market returns in excess of 20%. Just in the name of fairness here's a few folks who have a slightly different view for the upcoming year:
David Rosenberg: "Bearish Outlook for 2011."
Doug Kass: "Here Are My 15 Surprises To Watch For in 2011."
John Taylor: "Explains Why Off-The-Charts 2011 GDP Estimates Are Irrelevant, And Why Defaults WIll Be Pervasive."
Meredith Whitney: "50-100 US Cities Could Default."
Peter Brimelow: "Huge Stock Market Decline Coming, But Not Yet.."
Ken Fisher: "Prepare For A Very Frustrating Market in 2011."
Happy New Years, Haines!
