Predictions through 3/29/08

By on March 29, 2008

Click on spreadsheet for larger image:Gary B. Smith continues to express optimism because the fed is loosening the purse strings. I think we may be in a different situation now after the speculative orgy that occurred in real estate. There may be no stopping a very severe recession.

David Dreman thinks you’ll make money in select banks including Wachovia, Bank of America, Keycorp and Citigroup. I must admit, I have started positions in Wachovia, Bank of America, Citigroup, Fifth Third Bank, Comerica and Wells Fargo. The dividends are enticing although I suspect many of them will be cut.

John Bogle believes that due to continued high valuations, equity returns will be very subdued over the next several years. He is probably right and we’ll be fortunate not to lose money through the cycle we’re in now.

Brian Wesbury has been very optimistic about the economy for some time now. He may be changing his tune in the next several months if the negative trends in place continue.

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