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Economic Outlook 2008 - Recommendations |
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| For Business
Executives |
For Investors |
 |
Look for the housing debacle
to persist for years |
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Treasuries will lead early in 2008 |
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Tainted reserves at big banks
make loans harder to get |
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Risks increasing in international
investing |
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Plan for higher costs for
imported goods |
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Municipal bonds are attractive;
general obligation bonds with
solid underlying ratings are best |
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Plan for lower energy costs |
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Avoid speculating in housing
and real estate |
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Seek export opportunities from
the low dollar |
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Lower interest rates will benefit
non-cyclical, utility stocks, and
Treasury bonds |
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Plan on a much lower level
of economic activity |
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Consumer staple, undervalued,
and unloved stocks should hold
up relatively well in a bear market |
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Trim debt burdens before
recession deepens |
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Basic Materials, cyclical, and
durable goods are generally less
favorable |
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Manufacturing likely to
be strong after recession |
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Declining crude prices will make
oil stocks less attractive |
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Consider balanced and market
neutral approaches to offset
volatility |
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