 Outlook 2010:
What to Expect in the Next
Six to 12 Months
By Barry Habib and Sue Woodard
The past couple of years have been challenging for the U.S. economy as a whole. So what should you expect in 2010? Here’s a quick run-down of what we see in the next six to 12 months.
Is the Economy on the Rise?
After a very rough start, stocks had an amazing run in 2009 once Congress finally addressed the mark-to-market accounting rules. However, there may be a significant disconnect from the way the recovery is viewed on Main Street vs. Wall Street. Unemployment has increased significantly and many industries are still struggling. But it does appear that things are slowly getting better instead of worse. However, the market is still very fragile, which may make it tough for stocks to eke out significant gains during 2010. The most likely sector for growth is healthcare, since it hasn’t rebounded yet as much as other sectors.
Action Steps
Good economic news is a double-edged sword, as it increases the risk of rising taxes and rates. Many people won’t understand the relationship between rates and the economy. Use an e-mail newsletter and daily talking points to educate your database about the “why” behind the market and to establish your expertise.
There’s No Place Like Home
In early 2010, the housing market will continue to benefit from two incentives: the Homebuyers Tax Credit and low rates. Once these incentives are gone, we wouldn't be surprised to see a lull in the market, causing home prices to decline five percent to seven percent. But in the end, we see housing prices eventually firming toward the end of the year.
Action Steps
Continue to educate your database about the Homebuyer Tax Credit and current low rates. Use the impending tax credit deadline to move them off the fence before they miss this opportunity.
Click here for the full article... |
Check us out on YouTube!
