My predictions for 2011 include 1) the continued crack down by the feds on hedge funds, 2) the continued recovery in the U.S. and 3) distressed opportunities in Europe
1) The Feds are going to go all out and try to make the SEC not look like the clown shoes outfit we all know it is. GLG and other expert networks are going to be spending a lot of money on litigation and at the end of the day we are going to have a whole lot of cases and not many people in jail.
2) The U.S. recovery is going to be surprising to even a lot of bulls in 2011. As Obama begins to play ball with the Republicans who will push hard to make the Bush tax cuts permanent the job market will thaw as business gain more certainty towards their futures.
3) Europe is going to become a vulture’s paradise as Schwarzman and others sweep in looking for opportunities in distressed. Remember all the distressed opportunities in the U.S. that were scooped up in 2009? That will be Europe in 2011
A stock I love in 2011 is a perennial gold mine – Apple. We’re going to see the iPhone hit verizon and the iPad 2 both before the end of the second quarter. Sky is the limit.