Pros Say: Big Bear-Market Rally Mid-Year

Tuesday: Citigroup shares skidded on worries re the Smith Barney deal, but rebounded in late morning. Ben Bernanke told a London School of Economics audience that world governments need to do more to stabilize markets. And President-elect Obama is urging Congress to release the rest of the TARP funds. CNBC heard from experts who said the government has done just fine with the first half of the bailout fund — and predict a big bear-market rally mid-year.

2009: Transition Year In No-Man's Land

The economy is in a no-man's land, according to Beth Ann Bovino of Standard & Poor's, with policymakers trying desperately to keep what happened in Japan from happening in the U.S. Her fear: they may know what the weaknesses are — but have no real answers.

• Read The CNBC Stock Blog

Elliott Wave Intl.'s Steve Hochberg sees 2009 as a transition year, with a big bear-market rally coming in the middle of the year, followed by another move lower.

Markets Now Cashing In On Holiday Gains; TARP Critics Wrong

Cronus Futures Management chief strategist Kevin Ferry said 2009 got off to an unfortunate start with a market move higher on low volume, and we're now seeing the flip side of that. He noted consistent improvement in the credit markets since the Federal Reserve got involved and slashed interest rates. He said it's wrong to think that the government has mis-spent the first part of the TARP — and what the market dislikes most is wrangling over policies and actions.

Car Sales Frozen At 'Depression' Levels

Mike Jackson, CEO of AutoNation, the country's largest auto-dealer group, said his business is in a day-by-day fight for survival. In December 2007, GMAC accepted 1,500 car-loan contracts for Jackson's dealerships; in December 2008, the number was 6 — with 1,000 rejections. The lack of credit has dropped car sales to 1930s levels. He believes that unless credit improves, stimulus measures won't work.

_____________________________________
CNBC Intelligence/Investment Tools:

• Oil, Gold, NatGas Prices Now
• Dow 30 Stocks in Real Time
• Extra-Hours: Pre-Markets and Futures Data

_____________________________________
CNBC's Companies in the News: 

Citigroup

Morgan Stanley

Pfizer

AIG

Eli Lilly

________________________________

© 2009 CNBC.com