Share prices of most Chattanooga-based companies rose over 2009 as executives navigated one of the trickiest years in decades.
Miller Industries, Covenant Transportation, Dixie Group and Chattem were among local companies that experienced stock gains in the year, figures show.
“I think we’ve got more upside, but you have to be a little cautious,” said Chris Hopkins of Barnett & Co.
Ray Ryan of Patten & Patten Inc. said it has been a historic two-year period in global markets.
He said such periods of volatility have been associated with major transition periods for economies.
Chattem’s shares soared in December with the announced sale of the company to French pharmaceutical colossus Sanofi-Aventis for $1.9 billion.
After the deal closes early this year, Sanofi-Aventis will use Chattem as its U.S. platform in the consumer health care market, officials said.
Mr. Hopkins said he expects to see a shift toward equities in 2010, but he added that the markets are overdue for a correction.
“There’s a little bit of complacency” by investors, he said.
Patten & Patten recommends investors remain diversified and protected against negative surprises.
Mr. Ryan said any forecast must address actions by the Fed and other central banks.
“The pace and magnitude of actions by the central banks to remove excess liquidity will determine the relative performance of numerous asset classes,” he said. “Those authorities are attempting to nurture a nascent global economy recovery to the point of self-sustainability. The key element to a sustainable recovery, at least in the U.S., is job creation.”