Stock historians will remember calendar year 2009 as the year when the bears were overrun by the bulls.  In spite of gaining +3.2% (total return) on the very first trading day of 2009, the S&P 500 fell in both January (down 8.4%) and February (down 10.6%), continuing that downward spiral into the first week of March.  The floor was hit on 3/09/09 when the S&P 500 bottomed at 677, down 24.6% YTD.  The very next day, the stock index gained +6.4% and the rout was on.  Nine of the next 10 months produced positive returns, 5 of which saw monthly gains of at least +5%.  By the time the confetti fell on New Year's Eve, the S&P 500 stock index was up +26.5% for the year, its 2nd best performance of the decade and nearly 3 times the +9.4% annual average the S&P 500 has achieved during the last 50 years (source: BTN Research).   
 
When the financial crisis exploded in September 2008, the US government took over mortgage giants Fannie Mae and Freddie Mac, committing $200 billion to cover future defaults.  As the size of the potential problem was ascertained, the $200 billion pledge was doubled to $400 billion.  Just last Wednesday (12/30/09), the government reluctantly lifted the $400 billion cap and announced an unlimited amount of taxpayer funds will be made available through 2012 if necessary (source: White House).  
 
The House will begin its 2010 session on January 12th (a week from now) and the Senate on January 19th.  A compromise health care bill will be the first item of business for Congress (source: Congressional Calendar).