2011 Stock Market Predictions

From late April to May 23rd 2010 the market fell roughly 12%. Futures are pointing to a potential further fall. What can a trader and investor expect for the remaining part of 2010 and into 2011?  There are some pridiction by analyzing stock tips and Commodity Tips ,The bear market in bonds will be confirmed globally. While interest rates likely bottomed in 2010, a significant rise in rates during 2011 will confirm a bear market trend for smart money investors. This bear market will continue until the global currency market is restructured. The stock market will be less volatile in this year as company earnings recover and firms get back to business as normal after the turmoil of the GFC.  Analysts are tipping the banks, BHP and Rio Tinto plus gold miners as promising stocks, and say it will be an environment that favours stock pickers rather than investors targeting particular sectors or only blue chip stocks.  Stock markets were kind to investors in 2010. With little more than a week left, the FTSE 100 is at around 5950 and closing in on 6000 points. Breaking that threshold would represent a rise, from 5412.88, of 10.8%.

While I don’t know if the market will go up or down, I do know that individual investors and investment advisors will do the wrong thing at the wrong time. If stocks go up, they will buy. If stocks decline, they will sell. If something’s hot, they’ll chase it, and if something’s not, they’ll avoid it. Human nature is every bit as predictable as the stock market is not. I predict it will be a very bad idea to invest with your emotions. Some main factors about Stock Tips conspired to boost stock markets in 2011:

• Stocks should also get a nice boost from the return of retail investors, who are just beginning to pull their money out of the bond market and investing it back into stocks, Riley added.
• With a forecast for modest economic growth ahead, market experts are still favoring the industrial stocks to be among the best performing sectors in 2011 -- the sector already rose 25% in 2010. Strategists are also fans of energy, as commodity prices continue to soar; and technology companies, which boast some of the strongest balance sheets.
• The economic recovery in many parts of the world, including Germany and the UK, has been stronger than expected. Company profits have therefore grown apace as well, helping support share prices.
• Inflation could take hold and damage consumer confidence.
• Meanwhile, the utilities sector, which is sensitive to changing interest rates, will likely be the worst-performing sector as investors anticipate rising rates. Market strategists aren't too enthusiastic about consumer discretionary stocks either, since most Americans will hold off on avoidable expenses until the unemployment.