Happy New Year

Economically-speaking, we’re closing out 2008 on a down note. December consumer confidence dropped to the lowest level in 41 years.

2008 Predictions

Two more days and we’ll put 2008 behind us. 2008 set a number of stock market records, none of them good. I came across a Business Week article highlighting some of the worst predictions for 2008.

Reader Mail

I hope everyone had a great holiday. There’s nothing like a few days off work to connect with friends and family and recharge the batteries. Next week, we all get back to a regular schedule. And there’s a lot of work to do as we look forward to 2009. But before we get to that, here’s the next round of reader mail I promised you last week.

Commercial Real Estate

First it was residential loans, now commercial loans may be the next to go. A real estate analyst group called Reis Inc. is saying that if commercial rental income drops 5% from current levels, the risk of default for commercial real estate loans will triple.

Reader Mail

It’s been too long since I printed your comments and answered your questions in Daily Profit. After I finished cutting and pasting the most relevant, I came out with 5 pages of reader mail.

Tech Spending

Analysts are expecting tech spending to be the next domino to fall. A Citigroup analyst says the first quarter could be the worst ever for software companies. A Gartner analyst is saying "There’s going to be a period of reckoning that’s not going to be pretty…"

The Next Arrow

Bernanke has said it’s time to consider using the second arrow in the Fed’s quiver. That’s the "provision of liquidity" arrow. Maybe the Fed will buy Treasuries. Or maybe the Fed will start doing direct loans to businesses and even consumers. What could go wrong?

Who Can You Trust?

When the financial industry breaks down, there’s no recourse for lost money. It’s just gone. That’s why I continue to stress education and diligence to individual investors. Learn about all the investment possibilities and risks are, and stay vigilant with how you balance risk and reward.