WHM Capital Advisors

Gains in productivity are likely to translate into continued improvement in corporate earnings. Earnings surprises in this environment will benefit investors who have patiently invested in equities, even in the current downturn. In the mid-term, large-cap companies have done a very successful job of raising cash and paying down debt, giving them opportunities to capitalize on a slower growth environment. Smaller companies dependent on bank debt are still likely to face risks as bank lending is likely to stay depressed as real estate concerns continue to pervade bank portfolios.

There are still high levels of uninvested cash sitting idly on the sidelines. Equity markets are likely to do well in 2010 as the perception of risk diminishes and cash flows out of low yielding mone