More bull: ING investment gurus predict market run will extend into 2010

The Dow Jones Industrial Average will end this year around 1135 — and is poised for another 10% to 15% growth next year, predicted Paul Zemsky, senior v.p., and head of multi-asset strategies & solutions group. “We are of the view that there will be no double-digit dip in 2010,” Mr. Zemsky said this morning at a press briefing in New York. “We predict a mild recovery.” Specifically ING anticipates the gross domestic product to grow 3% in 2010 and personal consumption will increase by 2.5%. Despite these improvements, the money management firm forecasts unemployment to hover around 9.5% in 2010. The company doesn’t anticipate unemployment to begin to drop until end of the first quarter, said Uri Landesman, chief equity strategist and senior portfolio manager. When discussing which sectors it favors, Mr. Landesman said ING has identified the technology sector as an area of growth over the next several months. This will partially be driven by consumer spending during the holiday season, but also by companies upgrading their software and infrastructure next year, Mr. Landesman said. One area where ING Investment Management is not as optimistic as the consensus forecasts is in the savings rates. “We don’t have savings rates going to 8% anytime soon,” Mr. Zemsky said. “People are not that flush.” Instead, ING’s view is that savings rates may eventually hit 8% but not for another four to six years, he said.