Summary-
After the crash of ’08 and the vigorous rebound of ’09, we expect the economy and financial markets to spend most of 2010 moving sideways as they adjust to a slow “grind out” recovery. Jobs will be the key, as there can be little CPI inflation, rent growth, gain in consumer spending or main street improvements until unemployment is below 8% and falling. That is unlikely until well into 2011. Like the USC football team, it will be a building year, necessary before a healthy future economy can emerge.
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