Capsule: Neil Hennessy, Hennessy Mutual Funds

NEIL HENNESSY Chief investment officer Hennessy Mutual Funds Inc. Novata, Calif. Assets under management: $597 million Forecast for 2009: The economy will slowly start to rebound in 2009, with hiring starting to pick up in the second half of the year, Mr. Hennessy said. Many companies will be in a strong position because of improved balance sheets, the result of cutting jobs in 2008, he said. Despite the down economy, many public companies have still managed to make profits, which will bode well for the markets in 2009, Mr. Hennessy said. "As much as it seems in this environment that companies are losing money, they are making money," he said. "There is tons of money sitting on the sidelines and companies have tons of money sitting on their books." The 2009 finish line: The Dow: 12,500 The Nasdaq: 1,875 The S&P 500: 1,100 Tip Sheet: Favorite stock: Ross Stores Inc. (ROST). Favorite sector: Consumer discretionary. Next big thing: Institutional and retail investors will boost spending in the market in 2009 with cash that has sitting on the sidelines. Biggest concern: If interest rates are raised, it will be a setback in trying to turn around the real estate market. Reading, watching, listening to: Book: "Blue Blood and Mutiny" by Patricia Beard (HarperCollins Publishers Inc., 2008). Primary news source: cnn.com