The Federal Reserve's pledge to keep interest rates at near zero for an extended period means U.S. markets will continue to rise in early 2010—and asset bubbles and a shaky world economy will cause some investors to pull out of emerging markets, said Eric Ross of Watch Harbor Asset Management. He and Brian Daley of Conifer Securities offered CNBC their outlooks for next year.
"I think the worries that we have are really the rest of the world's starting to fall apart economically, particularly the euro zone," Ross said.
As the U.S. market rises, the dollar will continue to weaken, and commodities will head higher, Ross said. And although gold isn't his favorite commodity, it is a good way to play the weak dollar, he said.
Ross predicts January's earnings season will be better than many expect, with technology leading the pack. But Daley said investing in equities will still be stock-specific in 2010.
"It's going to be a 'show-me' type market," Daley said.
As far as what to avoid in the new year, Ross said to steer clear of any sector that's involved with housing—specifically, financials, home builders and lumber.
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Disclosure information was not available for Ross, Daley or their companies.