Asset Allocation 

• Staff Writer

EVERY JANUARY WE survey the members of our Asset Allocation panel and ask them to predict some of what advisors and their clients can expect in the coming year. Jeffrey Kleintop, LPL’s chief market strategist indicates that his biggest economic worry is the massive U.S. debt. He thinks the wind-down of government involvement in the economy will be prolonged and difficult and that the Obama agenda will have no effect on economic growth. Kleintop expects that we’ll start to see the economy match last year’s stock market growth by the end of the first quarter. Rather than global investing, he thinks high-yield bonds are the vehicle for good returns this year. As far as numbers go, Kleintop expects 2010 to close with the Dow at 11,250; the S&P 500 at 1,200; and the Nasdaq at 2,450.—Robert F. Keane

(More of our panel’s predictions and the full survey results can be found here.)

See the entire February Asset Allocation page here.