What is your outlook for bonds in 2010?

James: We like short-term fixed income for non-economic reasons, specifically preservation of capital. Our models do not forecast interest rates so any response I give would simply be a personal opinion. As I said before, I look beyond one-year time horizons and that view doesn't look favorable for the long bond. In comparison, I was 50% invested in very long-term, non-callable bonds during the '80s.

What are your favorite foreign country ETFs?

James: Currently, our biggest foreign holdings are in the iShares MSCI South Korea ETF ( EWY), iShares MSCI Canada ETF ( EWC) and the iShares MSCI Brazil ETF ( EWZ). We especially like resource-rich South American countries.

-- Reported by Gregg Greenberg in New York.
Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.

If you liked this article you might like