Year end is thick with predictions and forecasts for the markets in 2011.  So far, it seems that many analysts and strategists are viewing US equities with a degree of favor not seen since prior to the financial crisis.  For once it seems that the economy is going to simultaneously benefit from organic growth and fiscal and monetary stimulus. Ironically a rise in bond yields is actually helping make the case for higher economic growth (and confidence) in the coming year.  Another factor that could drive the market higher in 2011 is a rush to reduce underweight equity positions by both individuals and institutions.  That being said there are no shortage of headwinds facing the market, the most salient of which is whether equity investors have already gotten all the good news they are going to get? In today’s screencast we start taking a look at the case for equities in 2011.

Items mentioned in the above screencast:

Why the market multiple will be higher in 2011.  (A Dash of Insight)

Rising rates signal QE2 is working.  (Street Sweep)

The case for US equities. (FT Alphaville)

Advice for the buy-and-hold investor.  (Pragmatic Capitalism)

US equities should outperform both bonds and emerging markets in 2011.  (Big Picture)

Only recently has money begun to flow into US equities. (Money Game)

There is no shortage of market headwinds.  (Credit Writedowns)

Relative price performance of US equities, bonds and emerging market equities.  (StockCharts)