Market set to test new lows - J P Morgan Chase

Lawrence H. Summers, one of President Obama’s top economic advisers, declared the “free fall” in the economy was likely to end in the next few months.

But as investors abandon caution to snap up cheap bank stocks and riskier instruments, like junk bonds, to profit from the market’s earlier declines, skeptics are warning that the economy may face another leg down.

Companies continue to shed jobs and consumers are hunkering down in anticipation of a halting recovery. Most of the nation’s retailers on Thursday signaled that they expected to see a continued steep decline in sales as they waited for consumers to come out of hiding.

“I think this is all setting us up for a new low,” said Thomas J. Lee, the chief United States equity strategist at JPMorgan Chase, who predicted an 8 to 10 percent drop in stocks. “It’s not like I’m praying for it to happen, but it’s pretty much expected.”

One of the biggest worries facing economists is what would happen if unemployment rose beyond expectations and unleashed another wave of spending contractions and lower corporate profits.

Experts warn that companies reflecting other sectors of the economy will soon suffer a wave of sharper declines in earnings.

Company earnings for the first quarter of 2009 are expected to slump about 37 percent from last year, according to Thomson Reuters. Much of the decline will be borne by retailers, energy companies and businesses that make products like chemicals and building materials, analysts say.

And even though banks may report better earnings this quarter, they are hardly in the clear. As the recession deepens, banks will continue to rack up big losses tied to credit cards, corporate loans, and residential and commercial real estate.

Even Wells Fargo’s finance chief, Howard I. Atkins, was reluctant to declare victory. But he did not rule out taking more write-offs in the future.

Keep well,

Cheers

Does anyone have experience/knowledge of using softwares like VectorVest or some others which help in providing advise on when /which stocks to go in or out any particular time?

If yes, which software really works? There seems to be so many of those.

People here invest in Indian stocks? Any stock brokers here to deal in Indian stocks?

NM, i don't think that there are any brokers dedicated to invest in Indian Stocks. I am not sure you can open acc from here in India and even allowed but if you can, then you can trade yourself. Again I am not to sure abt it, but check with someone.

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clinton, answer to your question, trading with Questrade is cost effective, only downside is it won't be as attractive in terms of tool, look-wise, etc., compared with what you using right now.

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All CD members - seems few of them here on board do trade and have intensive experience. can you share your symbols that are really good on NYSE and TSX and worth to invest.

Thanx

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Originally posted by silverlining0123
can you share your symbols that are really good on NYSE and TSX and worth to invest.
Thanx

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

pratickm, I am not that naive to invest blindly whatever suggestions I get here on board. I am just trying to see the other options available, and don't see any harm to try looking for it. If any are worth can always be tried out.

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Originally posted by pratickm

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Originally posted by silverlining0123
pratickm, I am not that naive to invest blindly whatever suggestions. I am just trying to see the other options available, and don't see any harm to try looking for it.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"