2011 Outlook: Stock Indexes Expected To Gain In 2011

Stock markets are forecast to be up this year

"Equities have followed long cycles and 10-year returns are at a low
and equities are cheap."

Stock indexes are expected to rise in 2011, supported by what's helped them rise in the later part of this year: loose monetary policy, stimulus spending and good corporate earnings.

That doesn't mean that it will be a straight rise higher for equities. Analysts said volatility could be a factor in trading as the concerns that have been a drag on risky assets--the European fiscal crisis, U.S. housing and household debt--could ignite again and anchor the financial market.

Alan Bush, senior financial futures analyst at Archer Financial Services, was one of the first analysts to spot the current rally in equities. He said what's lifting the market now will continue to support equities in 2011. ... Read more.