Will The Stock Market Crash In 2009?

2008 was a disastrous year for stock markets from around the world with many seeing falls of over forty percent. The lack of available credit due to the “credit crunch” certainly took its toll as did the seemingly worldwide fall from grace in the banking sector. Unemployment rates are going through the roof and confidence in the economies of some of the major players (countries) is at an all time low, then there is the housing market, please do not get me started on the housing market, the bubble has well and truly burst there. So what about 2009? Will stock markets from around the world continue to fall or even crash again in 2009?

The fall out from the credit crunch is showing no signs of abating, in truth things seem to be getting worse. Despite a number of “recovery measures” and “bail outs” from various governments credit is still in short supply. The banks seem unwilling to lend the cash or are perhaps not in a secure enough position to lend it. Something has to give if things are going to improve.

I personally can not see a great deal of positive earnings data coming through from the major companies this year but can see a large amount of profit warnings in the offing. What would this all mean? Well only one thing I am afraid to say, heavy losses on the stock markets.

Then there is the seemingly ever-present terrorist threat. What if the United States or one of the other major Western countries was to suffer another major terrorist atrocity? Again the result would be further heavy losses for the stock markets.

All of the above does make the best of reading for those of you who are hoping that the stock markets will make some healthy gains this year; I too am hoping that I am wrong as I have some of my own hard earned cash invested within a number of equity based funds.

As a conclusion I believe that on average stock markets from around the world will lose twenty percent of their value in 2009.


Steve Hill is a webmaster from Birmingham, he has interests in a number of websites including:
stuttering therapies
DVD authoring
stuttering

Article Source: http://www.articledashboard.com/Article/Will-The-Stock-Market-Crash-In-2009?/722561