Barry Ritholtz of The Big Picture financial blog — a recent bear who saw the credit crisis coming — tells Barron’s that “there is a significant rally, 20% or 30%, waiting to happen.” But, he adds, “There’s also the possibility of a lower low, as we get deeper into the recession, if things take a terrible turn for the worse.” Asked which scenario will play out, Ritholtz, who is also CEO of Fusion IQ investment group, says he is waiting on a couple issues before making that determination:  clarity on earnings, resolution to the bailouts, and a sign that Barack Obama’s administration has a concrete plan for attacking the economic crisis.

Ritholtz says several areas interest him right now, including infrastructure, biotech, and medical devices firms — and even some financials, like Citigroup. He also says gold is a good longer-term play, given that the Fed’s huge infusions of money into the economy should eventually lead to inflation.