This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A First Peek Into 2009's Market

Christmas is over, and the refrigerator is stocked with enough leftover turkey, ham and pie to last me until the end of the financial crisis. If it doesn't, the leftover hooch form the annual Christmas Eve party should be enough to dull the pain of the economic conditions.

Now that the holiday shopping season is behind us, it is time to start looking forward to 2009 and what that may bring for investors and traders. As everyone scurries to return the ugly ties and broken electronics they got yesterday, I want to share my thinking for the new year and my best ideas for 2009.

I believe the first quarter will be a tough one for investors. The earnings reports that come in February will be brutal, and I do not believe that is priced into the market yet. All the market analysts surveyed in Barron's a week ago had estimates for S&P 500 earnings ranging from the low 50s to the mid-60s for 2009. I believe the low end of the range is going to be proven true, and at some point in the first quarter we will see a 6-handle on the 500.

I believe we will also see Treasury yields begin to rise in the quarter as the market begins to absorb the implications of the massive stimulus package that should become law before the end of January. Real estate is going to remain relatively weak in the first half of the year, but I believe there is a good chance we see some signs of stabilization in the second half of the year. It is going to be another tough year, but there will be opportunities for patient investors and astute traders.

My favorite stock for next year is Darling International (DAR). The company is in the most unattractive business imaginable. It collects hides, bones and other unappetizing animal by-products from butchers and meat processors. It also gathers used cooking grease from restaurants around the nation. These lovely leftovers are then turned into usable products including high-protein animal feed, tallow and various industrial oils.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,054.09 +74.96 0.44%
S&P 500 1,992.22 +5.71 0.29%
NASDAQ 4,528.2270 +1.7450 0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs