2010 Stock Market Predictions

I have been known to make predictions, and although I dislike leading people in an y direction, I am doing this for fun only. Please do not follow me, rather make your own personal choice while investing in the stock market. If you search my past predictions, you would see I predicted back in March, when everyone was panicking that the Dow would be at 9000 sometime in July. I also predicted the bottom of the market the day that it hit the bottom in the low 6000's Most of my predictions are just gut instincts, and really probably should not be used as an investing guideline, however Here I go with just a few more.

2010 Stock Market Predictions. (Prices predicted at the start of 2010)

Dow - 10650
We have just over 5 months before the beginning of 2010. The recession will likely be announced over sometime before the end of this year, and we may see the unemployment rate begin to ease. Stocks are still undervalued compared to their future profit potential. I think as long as there are no major snags along the way, 10,650 is a pretty good spot for the Dow to be trading at. That's almost a 20% gain from today's prices.

Google (Goog) - $550
I still love Google. The internet continues to grow, and the mobile internet continues to explode. Google has it's hands surrounding both. Internet ad revenue should continue to grow at a huge rate, and Googles new Wave could bring in a ton of users worldwide. Google should slightly out perform the market over the next 5 months leading to 2010.

Bank of America (BAC) - $23
Bank of America, although they have their share of issues, is a very strong company that should easily have explosive profit growth once the recession is over and things pick back up. The acquisition of Merrill will certainly help them in this once things settle. The housing market is clearly thawing out, and the bank will be the ones to benefit from this. A 80% gain in the next 5 months may seem extraordinary, but if you look at how far this stock has fallen it really isn't.

CD Interest Rates
If you are like me, you may have some cash you have that you like to keep free. I usually do this with no-penalty Certificates of Deposits. Having said this, the rates have been under 2% as of late. I think that starting in 2010, rates should begin increasing. By the end of 2010 a 4-5% CD will likely become available. To start 2010, I am guessing maybe 2.5-3% CD's will be available.

Like I said, take these predictions with a grain of salt. Follow your own stock market lead, not mine.