2010 is probably the hardest year to predict since I’ve been coming to PIggington.
2009 showed us that government intervention can have a huge effect on the stock market and housing market, especially in the short run.
As of January 2010 I feel that Housing, the Stock Market, and Gold are all slightly overvalued. However, none are so far inflated that government intervention in the form of printing money or targeted incentives can’t prop up any or all of them.
San Diego’s housing market isn’t exactly affordable, but I’ve seen houses in the neighborhood I live (92116) selling at prices that shock me. 2010 could easily be a flat year for real estate with seasonal fluctuations.
The overall economy will continue recovering with job growth emerging sometime between June and December. Politically the Democrats have a lot of incentive to try to accelerate that growth, while the Republicans hav ea lot of incentive to stall and stagnate. Recovery is coming, but the timing by a few months could have a huge impact on the election cycle.
