After putting up solid double-digit gains this year, the case for the stock market in 2011 is more of the same, says Teddy Weisberg, a veteran trader on the floor of the New York Stock Exchange (NYX) and founder of Seaport Securities.

New York Stock Exchange"We're going to continue to climb this proverbial wall of worry, because the problems have not gone away," Weisberg says. "The unemployment numbers are stubbornly high, the housing market is stubbornly weak, and I don't see anything dramatic changing there."

But at the same time, the U.S. economy is gradually and sluggishly improving, setting up inflation -- and higher interest rates at some point later this year. Weisberg says he has no idea when the Federal Reserve will move to raise short-term rates, but the smart traders will be those who jump on the opportunity to do some serious bargain-hunting, he says.

"The U.S. economy is going to be better than most people think, and that has a lot of people worried because of the threat of higher rates. But I think it's a positive, not a negative, because it means growth," Weisberg says. "And when higher rates come, it's going to slam stocks, and that's going to be a great buying opportunity."

For more on Weisberg's outlook for stocks in the new year, see the video above.

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ltsadv

Thank you Mr. president for saving Wall Street and Main Street. You will win a well deserved victory in 2012.

January 03 2011 at 9:43 AM Report abuse -1 rate up rate down Reply
1 reply to ltsadv's comment
tj1108

2 out of 10 on Main Street dont have a job.

January 03 2011 at 10:52 AM Report abuse +2 rate up rate down Reply
joethightwad

Insights?!!!!! All I heard was that if it doesn't rain, the sun might shine. Nothing but waffling and hedging. What is amazing is that folks like this make a good living talking out of both sides of their mouth and have a following that hangs on every word!

January 03 2011 at 9:38 AM Report abuse +1 rate up rate down Reply