Market Forecast

I seldom make market forecasts, but I’m starting to get very optimistic about 2009.

The timing may seem odd. After all, many financial institutions have imploded (and more will come), unemployment is growing, the economy is not, iconic companies like GM and Chrysler are on the ropes, and we have a Congress and probable President which seem determined to make thing worse. So why am I growing optimistic?

I suggest you look at the dollar and read The Tallest Pygmy. Just as people want to keep their cash in the strongest currency, they want their equity investments in the strongest economy. Our markets may look bad, but others look worse. An influx of foreign buyers into US equities, once all the sellers are done selling, will drive stock prices up. So pay attention to US stocks, particularly those of the largest companies that are well known overseas. 2009 could well be a banner year.

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