Capsule: Larry Carroll, Carroll Financial Associates Inc.

The stock market hasn't hit bottom yet, but by the end of 2009 it will have turned positive.
JAN 04, 2009
LARRY CARROLL President Carroll Financial Associates Inc. Charlotte, N.C. Assets under management: $1.1 billion Forecast: The stock market hasn't hit bottom yet, but by the end of 2009 it will have turned positive. Preferred stocks, which like bonds pay a fixed cash payment, are in many cases a better way to go than common stocks, because investors get the cash payment, along with the potential for appreciation. Bonds also will do well. "Products such as convertibles, and to a lesser extent, high-yield bonds, could provide you with a 10% to 12% return fairly easily," Mr. Carroll said. The 2009 finish line: The Dow: 9,647 The Nasdaq: 1,718 The S&P 500: 986 Tip sheet: Favorite stock: Preferred shares, Telephone & Data Systems Inc. (TDA). Favorite sector: Biotechnology. Next big thing: Once the money the government has pumped into the markets works its way through, the markets will stabilize pretty quickly. Biggest concern: The continued loss of jobs will have a destabilizing effect on markets. Reading, watching, listening to: Book: "Hot, Flat, and Crowded: Why We Need a Green Revolution and How It Can Renew America" by Thomas L. Friedman (Farrar Straus & Giroux, 2008). Newspapers: The Wall Street Journal, The Charlotte (N.C.) Observer and The Rock Hill (S.C.) Herald. TV: CNBC. Website: cnbc.com.

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