Stick with Stocks in 2010?

I believe everyone is seeing their bank savings rates keep going lower and lower to practically zero. So what do you invest in? Forbes posted an article 12/07/09 directly addressing this.
http://www.forbes.com/2009/12/07/asset-allocation-investing-market-equities-portfolio.html?partner=yahootix

Even if the Fed raises rates back to 2%, the rates on savings accounts, CDs, and Money Markets will remain low. This should help stocks to continue to attract money but at the same time you have to be selective in what sectors of the market will continue to grow. Think about how the consumer is spending or if overseas economies are recovering faster. Personally, my belief is that the chinese market is too controlled by their government and too volatile for my money. A preferred way to invest in Rest Of World, find stocks of companies exporting to these places. Ofcourse, inflation is always a concern which the article addresses with some suggested investments in commodities type funds. I like I-bonds for this also.

For nervous people that need safety, stick with shorter maturity bonds or I-bonds. Any rate change will affect the longer bonds more than shorter maturity bonds. Rates always affect the price of a bond inversely. What the article does not tell you is how short on the maturity side is safe to invest in Bonds. I have heard to stay at least with maturities of one to two years or less because of the unusual low rates currently. Better yet, call the mutual fund companies which have a Short-term Bond fund and ask them how much the maximum up and down percentage change has been over the last 5 years. Example, if it is +/- 3% for that fund, and the yield is currently at 2.5%, you could possibly lose 0.5% or more with a rate change.