Many speculators and bearish investors continue to say the stock market is overvalued or has had too long of a run up to continue through 2010.  Many of these investors also believe the free money flooded into the economy by the government will soon put a drag on equities which will drive down stocks.  These bears of the market have been missing out on one of the greatest bull markets seen in decades.  This past week we have seen several bad reports showing the sluggish job market and housing market continuing to take a toll on the US economy but the market still sustained and continued to climb higher…to its 15 month highs.  So why is the market back to the levels of October 2008; shortly after the September 2008 stock market crash?  The market is not overvalued.  The reason is simple…companies are making money. 

With 4th Quarter earnings starting next week, we will begin to see why the market has outperformed the way it has.  Of course we will still see low earnings from companies such as home builders and some retailers but we will see some great results from the technology sector, energy and basic materials.

The mobile technology boom including smart phones, laptops and netbooks is the main driving force for technology in 2009 and 2010.  The international growth that is seen in countries such as Australia, China, and Norway help drive the basic materials market.  These countries continue to increase demand in steel, coal, iron and other materials.

2010 will continue to be a bull market.  What will the Stock Market do in 2010?  My projection…continue its upward trend 40% for the year.

My 2010 Stock Picks and their current prices:

BUCY $67.28

AMD $9.43

RTP $237.20

GIS $70.20

LINE $20.00

BAC $16.78

WFC $28.86

CREE $59.37

MTB $73.84

AAPL $211.98

Be bullish in 2010.  The Equity market is not overvalued…companies are making money and so should you!

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