Everybody seems to be offering predictions for the coming year, so why not me? So here it goes………….
- The stock market will stage an early year rebound largely surrounding the theory that at last we will have a national leader who has a brain.
- The economy will rebound faster than expected because Americans cannot resist the temptation to spend.
- Housing prices will rebound slowly but will show signs of life by the end of the year. People still need a place to live and housing will take on a more rational reason for owning, and folks will stop using the "house" as a "bank". This will have significant long-term implications for the economy.
- Oil prices will spike to more than $100 per barrel sometime during 2009 as mid-East tensions boil over.
- GM will go bankrupt in 2009. There is no saving this pension liability pig.
- Alternative energy stocks will be hot in 2009.
- Any early year rally should be viewed as an excellent selling opportunity, because the structural problems in the economy are so acute long-term commitments to equities could prove quite risky.
Finally, while 2008 was horrendous for me by any standard, I hesitate to say things couldn't be much worse, because that could happen. Let's just say I hope it's a better year!!