Bob Doll, Chief Equity Strategist of BlackRock makes his 10 predictions for 2011:
1. US growth accelerates as US real GDP reaches a new all-time high.
2. The US economy creates two to three million jobs in 2011 as the unemployment rate falls to 9%.
3. US stocks experience a third year of double-digit percentage returns for the first time in more than a decade as earnings reach a new all-time high.
4. Stocks outperform bonds and cash.
5. The US stock market outperforms the MSCI World Index.
6. The United States, Germany and Brazil outperform Japan, Spain and China.
7. Commodities and emerging market currencies outperform the US dollar, the euro and the Japanese yen.
8. Strong balance sheets and free cash flow lead to significant increases in dividends, share buybacks, mergers and acquisitions and business reinvestment.
9. Investor capital flows move from bond funds to equity funds.
10. The 2012 Presidential campaign sees a plethora of Republican candidates while President Obama continues to move to the political center.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.