Sam Eisenstadt Sees Market 20% Higher In 2010 ( SPY, XLF)

Sam Eisenstadt, a former chairman of Value Line, Inc. and creator of Value Line stock ranking system thinks that the best way to analyze stocks in turbulent times like these is by predicting the stock market's total return over the next six months using the known data from the beginning of that period.

Eisenstadt wrote in his article for marketwatch.com that this approach is not perfect, but it is still better than the traditional way of estimating P/E ratio and interest level.

His approach predicts that S&P 500 will advance 11% in the first half of 2010. For the second half he looked at previous recessions and tried to compare market's behavior then and now. He concluded that after first nine months of the rally from recession lows the market tends to slow down, but it still continues to go up. He expects to see additional 7% to 8% growth in the second half which leads us to the total of almost 20%.

If you think that he might be right and that this approach is the right way to analyze stocks you can look at some ETFs that would benefit from the outcome Eisenstadt expects. SPDR S&P 500 (ETF) (NYSE: SPY) is surely one of them. This ETF corresponds to the price and yield performance of the S&P 500 Index. iShares Dow Jones U.S. Index Fund (ETF) (NYSE: IYY) will also benefit if market continues upward.