Today we’re already seeing the turnaround stories. REITs could lead the way in 2009! Financials will rebound in 2009! We’re not sure if they’re based on anything meaningful, or wishful thinking and the belief that things can’t get any worse in those areas.
No mistake, 2008 was a truly crappy year and we won’t blame anyone for wishing that 2009 brings hope and promise:
AP: Among the world’s major indexes, Japan’s Nikkei index tumbled 42 per cent during 2008, its biggest loss since its inception 58 years ago, while Britain’s FTSE 100 was set to close around a third lower than a year ago, its worst year since it was created in 1984. Germany’s DAX closed out 2008 Tuesday down around 40 per cent on the year, its second biggest fall in 20 years.
In the U.S., where the financial crisis proved to be most acute following the collapse of the subprime housing market and the bankruptcy of such Wall Street luminaries as Lehman Brothers, the Dow Jones was poised to end 2008 around 35 per cent lower on the year while the broader S&P 500 was set to end around 40 per cent down.
Grim as those numbers are, they were even worse before a December rally. The FTSE 100, for example, is 20 per cent higher than its October lows.