Report: 1Q Economic Commentary and Outlook (Free!)
January 15, 2009 4:15 pm
Each quarter we write a detailed review of how the global economic climate responded to varying conditions and what we see ahead. here are a few of the areas we cover in detail this quarter.
Usually, this is only available to clients of Horowitz & Company, but this quarter we wanted to make it available for your review.
- Economic data releases from the Bureau of Labor Statistics have been bullishly skewed and subsequently revised downward showing increased bearish sentiment.
- Optimism from proposed government intervention should not trump unprecedented unemployment, retail sales and credit problems
- Short term effect from economic stimulus in the form of rate reductions can be beneficial, but a longer-term solution is needed.
- Legislation needs to be enacted to expand the allowable plan assets and clearly define effective investment diversification.
- Mutual Fund companies and buy and hold advisors have failed miserably at protecting investor’s hard earned money.
- Money flows have clearly shown a skew toward ETFs rather than Mutual Funds.
- Increased incentive to borrow due to rate reductions will only decrease the chances for consumers to get out of credit problems.
- Access to credit by consumers will be limited by their lack of gainful employment.
- IPOs have become extinct which has caused investment banks to lose significant revenue.
If you would to read the detail and our forecast, click HERE