Each day that I look at this chart (courtesy of StockCharts.com), the better I feel about the stock market and it's direction.
The latest news: It now appears as though the dollars in capital required for the banks in the worst case scenario is generally satisfactory defined and the capital required for the firms that need to raise more is even less than anticipated. This means more confidence in the banking system, more liquidity, which will lead to more and better lending for the second half of 2009.
With the momentum of the market, the banking industry settling down, the consumer back into the retail game (WalMart SSS numbers released today, 6% yoy), and the employment figures making a U shaped recovery.....this year might be a real winner, the S+P 500 will definitely see 1000 and 1200-1300 is not out of the question.
My advice, invest in well run, profitable companies. You might say duh!, but my research tells me companies like Proctor and Gamble*, Pepsico*, Costco*, Conoco Philips, Emerson Electric, Yum Brands, McDonalds*, Caterpillar, 3M and many more will do fantastic in a market like this one. ( *These are stocks that I have positions in.) And most of these companies also pay dividends, bonus!!
I think another 25% could be your potential this year.......and who knows maybe 2010 may be good as well......many companies are again lean and mean. Happy investing!!