2008 November
U.S. Economic Outlook for 2009
If there's a proverb that captures the outlook for the U.S. economy in the New Year, it's the one that says: "It's always darkest before the dawn."
Regardless of any formal announcement of whether or not the United States drops into an actual recession, the ongoing credit crisis guarantees a contraction of the American economy by virtually every measure we know. That period of darkness will be marked by a dramatic slowdown in economic activity, as well as by rising unemployment, additional declines in U.S. stock prices, and constant volatility. And it could last as long as 12-18 months.
But when the dawn does come, it will be one to remember. If U.S. President-elect Barack Obama gets it right – and I have every reason to believe that he will – then investors will be presented with the greatest investment opportunity of our generation. At that point, shares of American companies will be at such low levels that wholesale buying by individuals, mutual funds, pension funds, institutional money managers, and foreign-controlled sovereign wealth funds, will generate gains that will not only make us whole, they will make us rich once again.
Reader Questions Answered
In the past 12 months we've witnessed a series of market events that most of us would never have imagined possible, including violent trading swings, the failure of brand-name financial institutions, frozen credit markets and world leaders caught unawares and rendered powerless. Little wonder it remains unclear just when, or how, the markets will hit [...]
Citigroup Board to Meet Today to Weigh Options for Embattled U.S. Banking Giant
By William Patalon IIIExecutive EditorMoney Morning/The Money Map Report The board of directors of Citigroup Inc. (C) will meet today to look at beleaguered banking giant’s options after its shares hit a 15-year low, and speculation is escalating that it will have to look at a break-up, spin-off or sale of at least part of [...]
The One Global Market Where There are Gains Behind the Gloom
By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report It’s easy to be gloomy when it comes to the financial markets. It’s even easier to write off China. After all, the Red Dragon’s markets have collapsed by 70%, businesses are shutting down, lead-laced toys and poisoned medicines have tainted the minds of Western consumers, [...]
Global Investing Roundups
GMAC Files to Become a Bank; Unemployment Nears 26-Year High; Mogul Signals Interest in Circuit City; Banco do Brasil Buying Out Rival; Crude Continues Slide; JPMorgan Cuts 3,000 jobs; Stock Market Craters; Detroit-based finance company GMAC has filed to become a bank, a shot at getting a slice of the $700 billion Troubled Asset Relief [...]
Iceland Gets $11 Billion Bailout, but Will be Saddled with Debt for Years to Come
By Jason Simpkins Associate Editor Money Morning Iceland today (Thursday) secured nearly $11 billion in loans from the International Monetary Fund (IMF) and other nations. The bailout will help the island nation stabilize its currency and recapitalize its banks, but it will also saddle its tiny population with a huge debt burden. The IMF will [...]
The Five Keys to Value Investing Profits
By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report Value funds have long been viewed as conservative investments. So why are they down an average of 42% during the past 12 months, and what’s wrong with them? No question, such numbers are scary, especially for large-cap value fund investors who have experienced that 42% drop. And [...]
Global Investing Roundups
BASF Halts 80 Factories; Oil Prices Slide to $53 a Barrel; Chinese Automakers Ask for Gov’t Aid; October Housing Starts Hit 49-Year Low; Honeywell Lands Engine Deal; Fed Sees Year-long Recession; Holiday Sales and Traffic to Plummet; BJ’s Profit Jumps 24% The world’s largest chemical company, BASF SE (ADR:BASFY), lowered its profit forecast and announced [...]
New Year U.S. Housing Market Forecast: No Gain, More Pain
[Editor's Note: This is the sixth installment of a new series that looks at the global investing outlook for 2009.] By Don MillerContributing WriterMoney Morning The U.S. housing market is already being pounded by the “perfect storm.” And the outlook for the New Year is for the stormy weather to continue – and probably to [...]
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