Based on BBC Article here
“The downtrend in the economy will continue for the time being as global growth slows,”
said Japanese Economy Minister Kaoru Yosano.
“We need to bear in mind that economic conditions could worsen further as the US and European financial crisis deepens, worries of economic downturn heighten and stock and foreign exchange markets make big swings,”
Mr Yosano added.
“The risk of Japan posting a third or fourth straight quarterly contraction is growing, given the fact that we can no longer rely on exports,”
said Takeshi Minami, chief economist at Norinchukin Research Institute.
The US market is expected to follow. What does this mean? Don’t buy now. Wait and buy in the heart of the recession when things look the worst. Don’t look at this as a disaster but as an opportunity. It is in fact a disaster if you were planning on cashing out your 401K this year, then you just got unlucky. I’m losing a lot of money in my 401K but hopefully the market will rebound and I will redeem my losses.
According to Reuters article here:
The U.S. economy is in recession and will contract at a faster pace in the fourth quarter, extending the decline into early 2009 as high unemployment crimps consumer spending, a survey showed…..
“With the recession continuing into 2009, GDP growth next year is expected to be a meager 0.7 percent. This would be the slowest growth over a two-year period since the early 1980s,” said Varvares, who is also the president of Macroeconomic Advisers.
Despite the gloomy economic outlook, the Federal Reserve would probably keep its benchmark overnight lending rate steady at 1 percent, raising it by 25 basis points in the last quarter of 2009, according to the survey.