The investment management firm forecasts that for 2006, there will be trouble in the housing market, causing consumer confidence to plummet, and therefore a slowdown in spending. Also, high oil prices could also hurt the economy and slow down the stock market.
"Don't overextend, don't take on too much debt," said Frank James, founder of the company.
Gold stocks, utility, finance and companies in non-cyclical industries - such as
If oil prices stabilize, then energy stocks could rebound, and then technology stocks could be a good buy as well, company officials said.
In addition, China and India will remain high-growth markets well into the next year, and Ireland is a good investment area.