2011 outlook

The recent pushback on health care reform appears to have boosted the stock prices of health insurance companies, which have outperformed major indexes by quite a margin so far this year. That's because Americans have been cutting back on doctor visits, keeping reimbursement costs low.

After a good start last January, equities tanked and didn't turn positive for the year until its last few months. If 2011 really is shaping up to be a reprise of 2010, the market is poised for a fall, according to Jeffrey Saut, chief market strategist at Raymond James.

The economy should keep gradually improving in 2011 as it did this year, but that doesn't mean the same investment strategy will work in the new year, says Oliver Pursche, president of Gary Goldberg Financial Services. When it comes to stocks, ample free cash flow and financial stability will be key, especially given the increased volatility Pursche sees coming. [Video]

Economists generally expect employers to steadily add more workers in 2011, perhaps as many as 250,000 a month by year-end. However, with so many long-term unemployed returning to the market, the jobless rate could still outpace those new positions.