After a week of ‘market corrections’ I have to think that 2010 is going to be a good year. When the herd mentality pushes stock prices too high, there is the inevitable correction and the herd brings them back down a little.
There is little reason to think that 2010 wasn’t going to be another good year for investors; the correction just makes it better. Now is time to buy in, while the market is down a little. That will help make your 2010 better than it would otherwise have been. Not that there aren’t concerns about the economies, or that investors shouldn’t be wary. But if you want guaranteed returns you shoudn’t be in the market in the first place.
But for those who last year, when propects were riskier, chose to take the risk, 2009 was a good year with some funds earning well over 50%. The questions now are whether this can be repeated, and where will the next 50% come from? I suggest you look at history and make your choices. People haven’t changed, so the market will reflect what people (always) do.