2010 was kind to investors. The Dow was up 11%, while China was down 16%. Commodities like gold, cotton, and copper did great, driven partly by the weakening dollar and partly from the incipient inflation. (The stocks of smaller companies did the best, up 26% . . . so much for that reverential regard of “Blue Chips” . . .)

Of course, it is fair to note that most of the overall market’s gain came in the fourth quarter, giving us lots of momentum for 2011.

Most market strategists are predicting another good year in the market. I agree, mostly. Most strategists think the second half of the year will be better than the first half. However, the market has gotten too far ahead of the economy again, just like it did last Spring. I expect a “swoon” or 4-6% decline in the market during the first half before resuming growth in the second half. Either way, it is a pretty rosy picture for this year. Another 2010 would be just fine!