Getting Harder to Defend Zero

As the markets continue to move up and the economy seemingly recovers, the Fed is faced with the difficult decision of raising interest rates in 2010. This will be a difficult process because unemployment is still very high and personal balance sheets are still damaged. Most major banks have repaid TARP whether for the right or wrong reasons, yet they continue to be stingy on lending money. Stimulus dollars are still at work but sooner rather than later that well will dry.

These are just some of the currents that are criss-crossing in today's economy. It's ugly and confusing. But, that makes for opportunities to reveal itself when the time arrives. I think 2010 will be more of a trader's year as opposed to the buy-n-hold year we had in 2009. Here's to 2010...