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A Crappy New Year or a Happy New Year?

January 18, 2010 Leave a comment

So, which one will it be, investor?

According to little old me, I’ve got some ideas and thoughts on what could make 2010 a crappy new year as well as what could make it a happy new year.

Why 2010 could be a crappy new year:

  • If there are more corporate crooks out there (and I suppose there are) that haven’t been caught or have prevented their crap from hitting the fan thus far, this could be the year their doodoo does hit the fan…and will become a problem for the rest of us
  • The housing market tanks badly once again when those who own two properties become financially strapped and can’t afford to pay for both of them. Oh, and this will be on top of all those who already can’t pay for one house.
  • Unemployment hits 12% (which means it’s more like 20%). This would really suck, especially since we’ve seen it slowing down a little. A number like this would create a resentful and miserable view of our country from the eyes of the average American.
  • Dick Cheney, not even in office, says something that really pisses someone off (Iran, possibly?) and it starts World War 3. And yes, I do believe Cheney is so surly and obnoxious that he himself could cause WWIII.
  • Another hurricane destroys part of the gulf in a horrible sequel to Katrina.
  • Too many investors listen to the so-called “experts” and buy investments they’re hyping up that most people know absolutely nothing about (this is just part of the inevitable “herd effect” but some years the herd is larger than others so here’s hoping the herd stays small as it did in ’09)
  • The Dow drops below 10000 and doesn’t regain its footing in the five digit range.
  • China ain’t all it’s cracked up to be and people who invested tons of money in the Middle Kingdom lose those tons of money.

Why it could be a happy new year:

  • The optimists are correct and the stock market continues ticking upward past the 11000 range and beyond.
  • Unemployment keeps dipping and leaves the 10% mark in its rear view mirror for a long, long time.
  • The housing market gets better and better with mostly positive news throughout the year (specifically: foreclosures drop hard, people start buying homes again and office buildings fill up their vacancies.
  • Tech gives the market another year of great returns with the usual suspects such as Apple and Google leading the way.
  • Consumers start buying a lot more stuff than they were buying last year.
  • More mergers and acquisitions turn Mr. Market into Mr. Happy.
  • The dollar gets back some of its muscle.
  • Fiat turns Chrysler into something worth a crap and starts putting out vehicles that actually look they might be worth driving.
  • Ford continues pushing ahead as the leading American car manufacturer and the Fusion keeps selling well.
  • Exxon Mobil, Apple, Google, Disney, Coca Cola and McDonald’s team up to form MOUNT OLYMPUS INC.¬† and declares it will be taking over the world starting in 2011. They buy every company that exists on the planet, erase the world’s debt and the market never sees a day in the red again. They also take over the federal reserve and seize control of the country’s money¬† (my ultra-ridiculous long shot prediction).
  • The gaming world returns with a vengeance with Activision becoming the undisputed king of video games, once and for all.
  • Sony’s earnings start gaining steam on the heels of better sales from the cheaper Playstation 3.
  • Earnings season shows that there is, indeed, a recovery a’comin’!
  • Citi and Bank of America give a positive earnings report. These two financial giants have gotten slammed by so many people you wonder if anyone outside of those companies is even on their side.
  • Google DOES say “nay” to China’s censorship policies regarding the internet and dances away from the Middle Kingdom (By the way, “Middle Kingdom” is the best nickname out there for a country, isn’t it?)
  • The four-day week following Martin Luther King’s birthday (that would be today) unleashes a fury on the bears as Citi, BofA, Google, IBM and others report stellar earnings.
  • The Apple Tablet is as good as it’s cracked up to be and proves that great products will still sell no matter the economical environment.

Anyways, I’m hoping for a Happy New Year and I’ll leave you with my one crazy, ridiculous prediction for this earnings quarter:

Tomorrow, Tuesday January 19, 2010, Citi (yes, I know I’m crazy) will beat analysts expectations and start a nice rally that continues through the week.

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