Stocks enter a holiday-shortened trading week with respectable returns for 2010 and the major indexes sitting at multiyear highs. Wall Street's average forecast calls for similar returns on the S&P 500 next year, but improving economic conditions at home and abroad, strong corporate profits and the Federal Reserve's easy-money policies have Joe Greco, managing partner at Meridian Equity Partners, even more bullish on equities in 2011.

The blue-chip Dow Jones Industrial Average is up a bit more than 10% for the year-to-date and, at nearly 11,500, is trading at a level last seen in early September 2008.

Stock traders celebrateThe broader S&P 500 ($INX) has gained 11.6% in 2010 and also stands at a 29-month high. Most impressive, the tech-heavy Nasdaq Composite ($COMPX) is up a robust 16.5% so far in 2010 to put it just shy of a three-year high. After a quiet December, Greco expects the rally to take off again in earnest.

For the first quarter in particular, we're looking for the market to rally a couple or more percentage points, perhaps in January right out of the gate," Greco says. The V-shaped recovery in corporate profits looks solid well into the third quarter of 2011, and companies are already running so lean that "an uptick in [corporate] revenue growth or any need for greater inventories could spur management to do some hiring," he says.

Naturally, more money in people's pockets is good for the economy, corporations and ultimately stocks. Furthermore, companies are staring to deploy their cash hoards on mergers and acquisitions, dividends and share buybacks, all of which are good for stocks, says Greco. And lest we forget, the Fed is determined to keep pumping liquidity into the financial system.

For more on Greco's outlook from the floor of the New York Stock Exchange (NYX), see the video above.

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americandoo

"TIME FOR BIG INVESTORS TO STEP UP TO THE PLATE LEAD AMERICA
BY INVESTING IN AMERICA"



"WHEN YOU INVEST IN AMERICA YOU INVEST IN YOUR
CHILDREN'S FUTURE"

"INVEST IN A LARGE PROJECT THAT WILL MAKE A DIFFERENCE FOR THE FUTURE"
Similar to this idea;


In past history when the USA needed a Moral Boost to our Country we built
such things as;

The Largest Bridges, Dams, Statue Of Liberty, Worlds Largest Futuristic
Fair, Landed on the Moon etc. It is overdue for us and time for us to build the
Largest & Best Futuristic CITY IN THE WORLD, using ALL OF OUR CUTTING EDGE
TECHNOLOGY AND ALL OF CHINA'S, GERMANY, RUSSIA and all other Countries CUTTING
EDGE TECHNOLOGY and BEYOND ALL OTHERS ! !

We need to find a location in the USA somewhere that has the space for our
"FUTURE WORLD PROJECT" where this ENTIRE CITY will Utilize all of the Newest
and Cutting edge combined technology in the world to build our City using
entirely GREEN energy with 0 pollution ! ! !

(This City Would Also Have A NEW VERSION OF THE STATUE OF LIBERTY, Holding the
torch in one hand and OUR SPACE SHUTTLE or GREEN PLANET EARTH in her other hand
raised high and

looking into the sky ! ! to our City..Too Cool Or What..) I would love to
be part of this project and so would America ! !

This would make a GREAT FILM & Could be based on a True Story with the help of
A TEAM OF BIG MONEY INVESTORS ! ! !

Use your Imagination and think how GREAT THIS WOULD BE FOR AMERICA & OUR
ECONOMY ! !

" COULD BE AN HISTORICAL EVENT IN OUR HISTORY BOOKS FOR OUR NEXT
GENERATION TO FOLLOW"

Thank You, Respectfully, Michael V. Caldwell, Proud American
Inventor/Dreamer..Dream Big..Do Big..

(Always Striving To Be Part Of The Solution Using Respect & Ameri-Can-Do
Attitude )

December 23 2010 at 8:31 PM Report abuse rate up rate down Reply
marhee9

They talked about the market last week at donsmithshow.com. It will be interesting to see how it plays out next year.

December 21 2010 at 1:50 PM Report abuse +1 rate up rate down Reply
Ron

The smug Wall streeters will be walking around with tin cups begging in the streets sooner than later. This time when the bubble bursts it will be one heck of burst.

December 20 2010 at 11:28 PM Report abuse +1 rate up rate down Reply
1 reply to Ron's comment
Jim Guy

Boy Ron, Lets hope you are right!!!!!!! Are you running out of your depression meds????? or do you always hope & pray for bad things just because you can't figure out how to buy that BMW all by yourself????

December 21 2010 at 8:44 AM Report abuse -1 rate up rate down Reply
Ron

I would not invest a dime in the pozi market and all of you who are attaching your wagon to this mule deserve what you get.

December 20 2010 at 11:22 PM Report abuse +1 rate up rate down Reply
1 reply to Ron's comment
Ron

P O N Z I M A R K E T

December 20 2010 at 11:23 PM Report abuse rate up rate down Reply
tomgold125

Obama new he would have paid a heavy price in 2012, just like he did in november.
Raising taxes on everyone would have killed the economy. Even though Obama is a
marxist at heart he knows letting the people keep there money is best for the
economy.

December 20 2010 at 8:56 PM Report abuse +2 rate up rate down Reply
Gumby

We will be driving in electric carts!

December 20 2010 at 7:09 PM Report abuse -2 rate up rate down Reply
Gumby

Or the rich will own the gas pumps .. Gas pumps will only be found in country clubs!!

December 20 2010 at 7:09 PM Report abuse -2 rate up rate down Reply
1 reply to Gumby's comment
Ron

Amen. The ones in their gatesd communities. They can't hide from the masses who will wreak havoc on the rich.

December 20 2010 at 11:24 PM Report abuse rate up rate down Reply
Gumby

As long as we stop buying gas guzzlers by the fleet!!!

December 20 2010 at 7:08 PM Report abuse rate up rate down Reply
kluj1

tell yah what greco....put your own money in and leave the masses alone. Dow 5000 in the very near future!

December 20 2010 at 3:43 PM Report abuse -1 rate up rate down Reply
toosmart4u

Do not have to be a rocket scientist to figure this one out. They have their tax break. Lots of cash to invest in themselves.

December 20 2010 at 3:43 PM Report abuse -5 rate up rate down Reply
2 replies to toosmart4u's comment
presidentporky

Being jealous of rich people shouldn't discourage you from trying to achieve financial success .

December 20 2010 at 4:23 PM Report abuse +1 rate up rate down Reply
vcgh2000

But it would be nice if they leveled the playing field a bit.....

December 20 2010 at 8:26 PM Report abuse rate up rate down Reply