Outlook for 2009 Economy is gloomy as the recession which has been confirmed by US economy as well as Japan seems to be spreading wings as it engulfs the entire Financial community, Banks, Investors across the World Markets. 2009 will mark the year as most unpredictable movements in stocks as there is chance of Severe downtrend and Uptrend in both Crude a Bullion s well as Stocks and not to mention the commodities too viz. Gold, Palladium, Rice and Wheat, including the Bullion markets.
The Money Markets, Bullion, Currency futures and Stocks are coming out of their blues which they had in 2008 , they would certainly have a range bound movements. Crude especially had hit low since last year Jan 2008 when it was heading above 150 and there is high possibility that it may retrace that level if war mongers and potential threat of War against Terror continue.
As Governments across the world are grappling along with their respective Treasury banks and also the continuous stimulus that is being injected by China, Japan, USA, Russia etc. are not
going to stop as this is going to be disaster unprecedented in history.
Secondly, the Stocks will attain the true value and specifically real estate stocks and mortgage stocks will attain the fair value , wherein the investors can start accumulating and also would keep the housing bubble to a controlled deflation.
Indian economy is growing at a rate of 2% to 4% as it was projected to grow at 7% and so is USA which is supposed to grow at 1% or 0.50% (correct me if am wrong with percentages). The FED and the Financial Markets have to sit together and call for a Meeting of All G8, G20 countries to decide and analyze as to what can be made to curtail the downfall of economies , which is supposed to happen shortly.
As Israel and its allies have struck Gaza and there is possibility of tensions mounting across the Middle East. Worst in terms of Food and Inflation numbers as well as growth GDP numbers are going to play hide and seek game. It is imperative for Governments to Put a plug into this so called HOUSING BUBBLE and severe liquidity crunch and say NO to Bailouts.
Finally, its high time that World Markets and Indian Markets get into regulations and also putting a plug to possible frauds and misappropriation of Money as well as Power due to rogue traders, corrupt bankers, siphoning of funds or any MADDOX scandals .
Interest rates that are affordable and banking reforms are a must to keep the recession at bay and also to handle inflation and to survive liquidity crunch.
Happy New Year to all my readers and Wish you a great New Year ahead and more Profits / happiness in 2009.
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