There are a lot of nervous investors around as we begin a New Year and decade. I view this as a positive, since the cash that is sitting on the sidelines will serve as fuel to propel asset prices higher as folks slowly acquiesce to higher prices.
This year isn't likely to proceed as 2009 did, however. Credit-related investments aren't likely to repeat their stellar run. The top dogs in my book are dividend-paying stocks of global firms, based both here in the U.S. and elsewhere. Economic growth won't be uniform, but expect worldwide economic activity to move forward, led by commodity producers such as Australia and Canada, and the emerging markets.
Japan is my dark horse choice for 2010. Some 65% of Nikkei stocks are trading under book value, and the companies that have meaningful global footprints should do well. Those Japanese firms that rely on domestic growth will likely suffer from malaise, much as they did in 2009.
