With the DJIA above 10,500, I don’t expect more growth by the end of the year. We have heard in the past January is a good month for the markets, but that is not always true. Over the past few years, we have seen the market sell-off not increase.
I am expecting retailers to report slower sales than what they predicted for the holiday season, and with the markets rising so quickly between the Summer and Fall, expect the markets to drop in January 2010. I don’t see the market dropping in January as a sign you should sell stocks, I would however, wait to see if the market declines 4%-5% in the month of January before committing new money into stocks or equity mutual funds.
My early forecast for 2010, is the Financial Sector will lead the way to the DJIA closing around 11,600 by the end of 2010. Many of you may want look at incorporating the strategy of Selling Covered Call Options, as a means to create additional income for your portfolios in 2010. I see the markets moving sideways for the better part of 2010, with an increase third and fourth quarter 2010.
If you would like to more about the Selling Covered Call Option strategy, please email me at JimWigen@GetWealthyStayWealthy.com.