Two Ways: World Bank Pulls Plug on Economic Recovery
Strengthen your portfolio in good times and bad.
The bank projected net private capital inflows to fall in the developing countries to $707 billion in 2008, down from $1.2 trillion in 2007. This, along with new regulations and increased scrutiny of the financial system, will put a squeeze on the global economy.
Economies for developing nations are now expected to grow by only 1.2%. In 2008, they showed 5.9% growth; in 2007, the number stood at 8.1%. Excluding China and India, GDP for the emerging markets is projected to fall 1.6%, which will likely cause an increase in both poverty and unemployment.
For more, see Professor John Mauldin's Reports of Economy's Recovery Have Been Greatly Exaggerated.
From the Bull Pen: Although commodities were one of the hardest-hit sectors today, consider Schlumberger (SLB) pulling back to $50, the level where it last broke out. Bulls can fade (read: buy) into that mark, with a sell stop below $49.
From the Bear Cave: Bears can look to JC Penney (JCP), which could be in the early stages of a downtrend. Look for a snapback to $28, with a downside entry if and when.
I hope the worst is over. See you tomorrow morning!
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