Everyone has their own opinion, and there is plenty of speculation on the state of the stock market and the overall economy, but what do you think? I’ve heard some analysts say that after the better than expected earnings of many companies, including some of the financials, that the worst is behind us. Others predict this will continue for another few years.
I’m not even real sure myself where we are, and where we’re headed. Inflation is becoming more and more of a concern, and even if we’ve seen the worst of the credit crisis, that will certainly hold things back. And the Fed doesn’t have much room to make any interest rate decisions right now, because even with high inflation, the option to raise rates certainly wouldn’t bode well for other areas of the struggling economy and underlying markets.
While I do think that some of the news that has been coming out lately is better than the past few months, I’m not quite sure we’re out of the woods yet. But that being said, I also don’t think we’ll see the bad news last too long into next year. Then again, I’m not an economist either. So, where do you think we’re headed and when will the bleeding stop?
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
I think we are very close to the bottom now. Everyone knows that we're in for a tough time in the next few years but I think this is now reflected in companies' share prices if you look at actual earnings projections going forward.
I couldn't answer completely through the polls. Let me explain. I think we're at or near the bottom, but I think we'll be here for some time. The stock market is a leading indicator and will rebound before the economy in general.
However, I think now is the time, if you've got the inclination, to buy individual stocks. The market may move sideways for quite some time. But some individual stocks will move up, some down, some sideways, and some up and down.
If you're selective, pick an industry that you think may rebound sooner rather than later. I'd key on the oil industry. I think there's been a speculative bubble, I think by its very nature that price gouging is the rule, and OPEC and other controllers of the liquid gold are hosing us. Not to mention the fact that our dollar has fallen precipitously.
That leads me to believe that "alternative" sources of conventional-type energy (coal and natural gas) will rise in value as substitutes to oil.
Pick a good company in a great industry and you may find yourself having made many multiples on your invested dollar.
Plus, as a new president is elected, no matter who it is, the economy will rebound. It always does.
Recent bounce was a dead cat one. I have bought some put options expecting falls next week. We still have more pain to come, but I think early in the new year is when things will start to improve.
Hah ... wished I would have picked the mattress one. I'd have been the only one.
The FED will inflate eventually and stocks will go back up, but right now too much is unraveling. I think shorting the broad indices is a good idea but I haven't mustered up the guts to do it yet.
I'm not quite sure the jump the last two days is the beginning of a rise from the bottom, but I do think things will start improving towards the end of the year.