Sorta scary 2011 market predictions
By Dian Vujovich
Now that it’s Halloween week, I thought I’d focus on the stuff that some ghouls and goblins think are coming our way. This blog will focus on the first of the 2011 forecasts I’ve read. Color it orange—maybe even red.
Last week, InvestorPlace.com published its forecast about our economy and the markets for next year A little background: InvestorPlace is part of InvestorPlace Media, privately owned by Avista Capital Partners and located in Rockville, Md. The company began 35 years ago in the investment newsletter publishing business. Its audience then— advice to individual investors. Today, advice and investing suggestions to both individuals and institutions.
That said, in an 11-point on-line presentation, comments were made on everything from how their seers think the housing market is likely to perform to market returns. Here are three of those points:
-“2001 will not be the year the housing market recovers
Foreclosures will slow in the beginning of the year, but pick up speed in the second half, delaying the housing recovery until late 2013 or early 2014.”
I see that a little differently with top-tier priced multi-million dollar homes continuing to sell. Albeit the pace might not be skipping along. And if interest rates remain low, which InvestorPlace suggests they will do, bargain-priced properties will start selling too. An attractive deal is an attractive deal no matter where you sit.
-Their second point: A double-dip recession becomes official. “Revised numbers will show GDP growth was less than 2 percent in 2009, and less than 1 percent in 2010. Without a housing recovery, there will be no economic recovery
-And, “Unemployment officially goes above 10 percent.”
Homer Simpson would say “Doh!” to that.
You’ve seen me write before that I’ve thought unemployment was closer to 15-20 percent —and in some parts of the country close to 25 percent. It’s a real problem. A real serious problem. As is the pay of the jobs available and those coming in down the pike.
Read all of InvestorPlace’s thoughts about 2011 —and no more of mine–at: http://tinyurl.com/38gqdr8 or: http://www.investorplace.com/20790/market-predictions-for-2011/
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