2009 Predictions

Here are a couple predictions for 2009, good riddance to 2008 which saw a dismal economy and a negative 38.5 % downward move in the S&P 500.

1. Stock market up at least 25%. The market will rally at least 25% in 2009 but may not finish the year up that much as the bear will continue to hit the market well into 2010.

2. Madoff takes a bullet. Former hedge fund manager Bernard Madoff, whom stole 50 billion dollars in a fraud scheme won’t live to tell about it. Not sure if it will come from a disgruntled investor he stole millions from or the Russian mafia he was rumored to launder money for but there is a bullet out there somewhere with his name on it.

3. Housing market bottoms. The government finally is focusing on the right things to bring a bottom to the market – interest rates. If the government can get long term rates down to a target of 4.5% and keep it there, then housing can finally bottom.

4. Almost all public builders go bankrupt. Most of the big public building companies will dry up and blow away in 2009. That means the DR Horton’s, Centex, Pulte Homes and the like. This will actually be a plus for the economy as it will dry up the supply of new homes on the market- and that is needed to make #3 come true.

5. Huskies win a game. 2009 will be a break through year for the Dwags as they actually win a game.