What To Watch For In 2009

The new year holds a lot in store for our economy, financial markets, and consumers themselves. 2009 will start off the same way 2008 ended...lots of fear, a struggling economy, and a beaten down stock market. The economy will be down for most of 2009 with maybe an increase in productivity towards the end. We must be patient and allow all the initiatives taken by the government time to work. Recessions just don't end abruptly. It takes a little time. As for consumers, confidence will remain low until a pickup in the economy and/or stock market is seen. I would have to say that consumer confidence would have to be the first to pick up since the consumer is what drives the economy. Until then we will see depressed earnings in retail, housing, and some technology. Industrial companies would also see continued slowing growth of earnings as they move with the economy. Financial markets will also take a while to recover as they absorb losses of acquired companies, begin to lend more money, and inspire growth within consumers. All of this will take patience and at least 6 more months to see any sort of change. The patient investor is the one who benefits most. Have a happy new year and may 2009 be the best yet!