In addition to his annual forecast, Doll has a series of predictions for the coming decade, including a prediction U.S. equities will post 6% to 8% annual returns. That would be close to the stock market's long-term average, with the "headwinds of deleveraging and debt pay down...likely to keep growth for the decade a little slower than it otherwise might be," he says.

Similarly, Doll sees a reversion to the mean for the economy, which he believes will suffer more frequent recessions in the coming decade vs. during the past 20 years.

Doll further predicts the dollar will "continue to become less dominant" in the next 10 years but, unlike many others, he is not predicting a worst-case outcome for America. The United States is better positioned for growth vs. Europe or Japan, says Doll. "At least in the U.S. we have positive population and workforce growth, and we have positive productivity," he says. "They are the most important determinants of a growth rate in the economy in the long run."

As with most forecasters, Doll believes emerging markets will continue to drive world growth and says related stocks will continue to outperform their more mature peers.

Below is the complete list of Doll's predictions for the next decade...

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"A return to normalcy." That may be the best way to describe the outlook of BlackRock’s chief investment officer, Bob Doll. After two years of extreme volatility, Doll predicts market and economic conditions will continue to improve in 2010. (See below for complete list of his 2010 predictions.)

Doll forecasts improved economic growth of more than 3% next year. However, that growth maybe tempered for many by "stubbornly high" unemployment.

As for that massive stock market correction the bears are waiting for? Not going to happen, says Doll. He predicts the bull run will keep charging ahead -- albeit at a slower pace -- as the S&P 500 hits 1250 in 2010.

Doll favors health-care stocks, now that there's less uncertainty surrounding reform. He especially likes managed care provider UnitedHealth and big-cap biotech stock Amgen.

He also expects technology stocks will remain a good buy, noting Microsoft and IBM both look attractive.

As far as a more defensive investment, he expects telecom to be a safe play. He likes big caps like Verizon and AT&T, citing their 5%-plus dividend yields.

What sectors should investors avoid? Watch the accompanying clip and click "more" to see all 10 of Doll’s predictions for 2010.» More

Say it ain't so Ben. Federal Reserve Chairman Bernanke recently blamed lax regulation for the financial crisis -- not the Fed's easy money policies, which encouraged profligate spending from Wall Street traders to American consumers.

From Bernanke's remarks Sunday to the American Economic Association in Atlanta: “Stronger regulation and supervision aimed at problems with underwriting practices and lenders’ risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates." 

Together again after the holidays, you can imagine Aaron and Henry had something to say about Bernanke's non-apology. Several salient points to remember:

Missing bubbles and evidence of fraud. As Peter Schiff of Euro Pacific Capital has said: "Ben Bernanke has never gotten anything right." Back in 2005, Bernanke denied there was a housing bubble and in 2007 said the subprime mess would be "contained." Bernanke's predecessor Alan Greenspan was the chief financial architect during the tech boom and bust, as well as the onset of the subsequent housing bubble. 

The Wild West. Deregulation was the trend during Greenspan's tenure. Glass-Steagall was repealed, banks were allowed to increase leverage and former CFTC chairwoman Brooksley Born was ostracized for wanting to regulate the growing, murky derivatives market. Mix in rock-bottom interest rates and a perfect storm was created, as Aaron says, for Wall Street to roll the dice with few consequences. As Bill Black of the Univ. of Missouri-Kansas City notes, there was FBI knowledge of "epidemic" mortgage fraud as far back as 2004. Today, still no perp walks.

Backbone, please. Bigger picture, what may be more troublesome...

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The planned retirements of Democratic Senators, Byron Dorgan of North Dakota and Christopher Dodd of Connecticut is a potential blow to President Obama's agenda. Democrats were expected to lose some seats in the 2010 Midterm elections and the retirements of Dorgan and Dodd put the Democrats' tenuous "supermajority" of 60 seats in greater jeopardy.

The political shakeup also has major ramifications for Wall Street.

As Chairman of the Senate Banking Committee, Dodd is key player in the effort to reform and reregulate Wall Street in the aftermath of the 2008 crisis and resulting bailouts.

Among other issues, Dodd has supported:

• The creation of a Consumer Financial Protection Agency, something opposed by both Wall Street and ranking GOP committee member Republican Richard Shelby.
• The re-nomination of Ben Bernanke as Fed chairman: Dodd's support helped Bernanke survive a contentious hearing last month.
• The creation of a "Systemic Risk" Regulator: Even as he expressed support for Bernanke, Dodd has advocated for policies that would limit the powers of the Federal Reserve as the nation's premiere banking regulator.

As Henry and I discuss in the accompanying clip, the effort to "reform" Wall Street has been painfully meek thus far and nothing has been done to address the problem of "too big to fail" banks. Dodd certainly shares some responsibility for that...

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From The Business Insider, January 5, 2009:

Gluskin Sheff analyst David Rosenberg maintained his steadily bearish tone throughout the 2009 rally and got labelled a permabear.

But he didn't give up or capitulate.

In his latest Breakfast With Dave newsletter, Rosenberg lays out his big thoughts for 2010, and as you might expect, they're not pleasant.

Key ideas range from weak GDP growth to a weak consumer to the government's weak financial position.

Click here for the full presentation.

More coverage from The Business Insider:

• Rosenberg: Deflation is reality, the consensus view is garbage
• Marc Faber's genius is that he can never be wrong

Famed hedge-fund manager John Paulson presciently bet against the housing boom and financial companies beginning around 2006, when the market was still frothy. It turned out to be a brilliant, contrarian play. Paulson scored about $20 billion of profits between 2007 and early 2009, according to WSJ. This year he's ramping up on gold. 

Perhaps less well-known, David Tepper of Appaloosa Management bet big on financials and a sharp economic recovery last year, when most market watchers were calling for economic Armageddon. Kaching! It's estimated Tepper personally will make more than $2 billion(!), as the Wall Street Journal's Gregory Zuckerman first reported.

So how did these guys do it? Henry asked Zuckerman that question in the accompanying clip.

"It is betting against the consensus ... But there's a little more than that," says Zuckerman, author of of "The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History."

Big upside, small downside. For Paulson and Tepper, both fund managers saw opportunities with big gains and (relatively) little risk. Paulson's investment vehicle of choice -- CDS or credit default swaps, a kind of insurance premium with limited downside, as Zuckerman explains. Tepper bought banks and their debt on the cheap, betting that the the institutions wouldn't be nationalized.

But hold on. Don't necessarily try these big bets at home, says Zuckerman, who covers hedge funds. Big-time hedge-fund managers not only have the cash to back their trades, they're also often concentrated in a way most average, individual investors can't afford to be. That single year of phenomenal riches often can be bookended by incredible losses and volatility.

So did Paulson and Tepper time their trades brilliantly? Or was it just a matter of going to bat multiple times? Click "more" to review the clip and embed the video. 

2010 is off to a bullish start as the Dow posts a triple digit gain halfway through the first trading day of the New Year.

The question is, can the bulls continue to lead the charge in 2010?

Gregory Zuckerman, senior writer at the Wall Street Journal, who tracks hedge funds says many of the best managers remain long. "The smart money is fully invested and even leveraging up right now." But Zuckerman also warns, "they could turn on a dime."

Zuckerman points out several current popular trades could make the rich even richer but don't necessarily point to bullish returns for the rest of us.

• The Bet Against Japanese Bonds. As Henry reminds us in the clip, many an investor has been burnt betting on higher interest rates in Japan. Why will this trade finally work? The argument is that as the population gets older, there will be less domestic demand for bonds. Zuckerman notes, "already the biggest pension fund in Japan, which is the largest in the world, has said it may be a net seller as opposed to a buyer." Good news for those betting against Japan (Kyle Bass and David Einhorn) but potentially bad news for world markets as the effects ripple across the global debt markets.
• The PIIGS Trade. PIIGS Stands for Portugal, Ireland, Italy, Greece and Spain. It's another play against sovereign debt. We've already seen CDS prices rise on Greek debt as they tackle rising budgetary problems. The PIIGS trade is a belief that Greece is the first domino to fall in Europe. As Zuckerman describes it, hedges funds believe "2010 will be the year where will have real big issues in sovereign debt."
• Buy Gold. There seems to be some disagreement within the hedge fund community over this trade. John Paulson and David Einhorn are bullish. Both jumped on the bandwagon last year with solid results. Paulson, who famously made billions betting against the housing market in 2008 and then turned bullish with outstanding success in 2009, looks to increase his bet on gold in 2010. However, David Tepper, who's bullish bet on banks in 2009 netted his fund $7 billion, and Bill Ackman, the noted value investor, either don't believe in gold or see other ways to beat against a falling U.S. dollar.

From The Business Insider, January 4, 2009:

The chart below comes courtesy of Morgan Stanley analyst Teun Draaisma. It takes a look back at the last few recessions, and then the timing of three subsequent economic events: non-farm payroll growth, the peak in ISM new orders minus inventories, and then finally the first rate hike. As you can see, we haven't even had the first two, and in the recent recessions, the rate hike (as shown by the green bar) comes significantly after the recession is over.

Seeing as many suspect Bernanke will be uber-accommodative this time around -- he practically promised his lack of desire to prick bubbles through rate hikes in his speech this weekend -- it seems safe to say that a rate hike is nowhere on the horizon.

Source: Morgan Stanley Equity Research: The Defining Feature Of 2010

More coverage from The Business Insider:

• Goldman's giant call: No fed rate hike until 2010
• Bernanke: Better regulation, not better monetary policy, is key to preventing bubbles

In the past several weeks, many interviews and segments got you talking, but it was those focused on the government and President Obama that seem to really spark reaction.

Henry and Aaron highlight a few of these in the accompanying "mailbag" segment.

Sit back, relax and enjoy!

Keep those comments coming - we appreciate the input and are definitely reading them (so please keep it clean).

From The Business Insider, Dec. 31, 2009:

Compared to "investing," pure trading doesn't get a whole lot of respect.

The words "trader" or "speculator" are both frequently used as pejoratives, describing people who just want to make money

But if you're willing to endure the criticism, a successful trader can make A LOT of money, in a real short period of time.

Join us, as we walk through...

The greatest trades of all time, click here.

More coverage from The Business Insider: 

• The worst-case scenario for 2010
• The 15 moguls who lost the most money this decade