My market view: no body knows in short term. I am not very optimistic in long run. The oversized return between 1980 to 2007 is helped by information technology revolution and financial engineering (leverage). The positive impacts of them are close to the end. The stable inflation over last 20 years is due to the cheap imports from China and other emerging market. The depreciation of dollar and the increase of fuel cost will make it hard to contain inflation over long term.

My reason for my picks and my targets

HSE (Husky energy). An oil gas company trade in a low P/E, good reserve, and 4+% dividend, good exposure in Asia and major shareholder is a deal maker in Asia. Target $34 (but will take profit if going up quickly)

INTC (Intel). Earnings are great and Window 7 is going to puch a major upgrade cycle in business. Target: 21.5