Economy:
1. The economy will recover for the most part but GDP growth will remain sluggish and will stay at about 1% for most of the year.
2. Housing prices improve very slowly and much of the toxic assets have been flushed out of the system. There is no substantive financial reform of any kind. There is much talk of Glass-Stegall being reinstated but it does not come to pass. Wall Street continues to own Washington.
3. Oil Prices will spike as the Iranian crisis spirals out of control. It will again peak above $150 and will stay above $100 for much of the year. Oil will close at $98 by the end of 2010.
4. Unemployment will stay at about 10% for the whole of 2010 but Americans will slow their spending considerably due to high energy prices. There will be a jobs bill passed in early 2010 that will slowly drop the unemployment rate. Democrats will crow that they saved the economy with this measure.
5. Interest rates will creep up and be several points higher by this time next year. Large deficits will dog the economy for years to come.
Stock Market:
1. S&P: 1100, Dow: 10,500, NASDAQ: 2500
2. The Top 3 Industries: Technology, Oil and Natural Gas, Hospitals
3. Bottom 3 Industries: Steel, Consumer Goods, Gold
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