Do you see a rebound?
The Mall of America would be a great practice field for the Minnesota Vikings, fall and winter clothes are already 40% off at Macy's, and the Palms in Vegas is mailing me coupons.
Recently, I went out to eat with some friends: One owns a construction business that has come to a standstill; two are media types out of work; and one is the owner of a small manufacturing company, who is laying people off as fast as she can and is now worried about her own survival. And I'm sure you've heard similar tales of woes from your family, friends and neighbors.
So, what should you do now?
For starters, ignore the noise. There will be a statistical bounce in economic data, including GDP data for Q3 and Q4, and perhaps seasonally adjusted employment data for November and December. Then we will witness the economy flat line or leg down in 2010. Corporate profits will be lower than forecast and, with that, so goes the stock market. And it may happen sooner than you think.
Don't let your portfolio get wiped out a second time. Instead, prepare yourself for this reality and start thinking about positioning yourself on the short side in 2010.
See all 10 reasons the economy won't recover in 2010 here.
And to prepare yourself for what's coming next in the market, check out:
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
Reader Comments (Page 1 of 1)
10-25-2009 @ 1:27PM
ausvetdiag said...
I am not seeing what you are. My business is fine, we have waiting lines at restaurants, malls are busy when my wife shops, etc. YOu must live in the mid west.
10-26-2009 @ 8:14AM
Warren said...
Malls, store and restaurants are PACKED around here. I see little to no difference from before the crash. It's definitely rebdounding. Just try to find a parking spot at the mall - on a Friday afternoon!