Newsletter guru Jim Oberweis says that growth stocks are entering a period of above-average returns, and that small-caps and Chinese firms offer potential for serious growth.

“While the overall U.S. economy may indeed exhibit a muted recovery, plenty of companies will thrive, particularly among small-cap stocks,” Oberweis writes in his latest Forbes colunn. “Many niche-oriented small-cap companies that offer a new technology or medical device in high demand will deliver sustained rapid growth.” Investors will pay a premium for those firms’ stocks, he says, adding that such companies will also offer an inflation hedge, because they’ll have the most ability to raise prices in an inflationary climate.

Oberweis also says that investors shouldn’t let fears about “the next bubble” keep them away from Chinese stocks.

While some have surmised that Chinese stocks are indeed in a bubble, he disagrees, pointing to the country’s 9% growth rate in the most recent quarter as proof that Chinese stocks are worthy of the attention they’re getting. “We prefer small companies benefiting from a growing middle class and not dependent on export-driven growth,” Oberweis says. “Individual investors would be best served with a diversified mutual fund focused on this region.”

Oberweis also explains why bonds are not “the safe bet” in 2010, and he lists a few stocks he thinks are poised for rapid growth in the coming year.