In investment-related media, every year begins in a similar way.  Forecasts are made and then indexes do what they will.  Enter a search on “2010 stock forecasts,” and see what you find.  Or, just keep an eye out in just about every investment-related publication.  We understand that analysts have to make a living.  We also know that some of them will get lucky.  We just don’t believe that luck is a good enough foundation for your financial future.

The S&P 500 closed 20% up for 2009, which effectively debunked many early 2009 predictions.  Here’s a BlackRock prediction that called for a 7 to 12% market increase.  At least they called for a general market rise, as opposed to picking individual stock movements, and at least they got the general direction correct.

Here are our predictions for 2010, and beyond:

1. Annual January predictions for stocks, sectors, asset classes, and the market as a whole (domestic and global) will continue to be popular.
2. Markets will not be consistently and accurately predicted.
3. Volatility will remain a natural part of investing.
4. Returns of asset classes will be random