Pros Say: Deflation, Global Weakness Until 2010

Global stock markets may be up Tuesday, but the economic outlook remains grim. Investors are cautious ahead of the Federal Open Market Committee two-day meeting on concerns that central banks may not be able to prevent a global recession.

CNBC's experts share their views on where the economy is headed and how long it will take to recover:

Global Economic Weakness May Last into '10

According to Glenn Maguire, Asia Pacific chief economist at Societe Generale, global economic weakness could last through to 2010.

Risk of Deflation Rising

We are moving into a period where there is probably an increased risk of deflation than inflation in 2009, says Glenn Maguire, Asia Pacific chief economist at Societe Generale.

Yen May Test 80 vs. the Dollar

The dollar-yen may test 80 as Clifford Bennett, chief economist at Sonray Capital Markets does not see coordinated action from the G7 to cool the yen's strength.

Expect More Euro Weakness

The euro could face further downside against the dollar in the next six months, says Shane Oliver, head of investment strategy & chief economist at AMP Capital Investors.

Aussie-Dollar May Plunge Below $0.49

The Aussie dollar may fall to $0.49 against the greenback in the next few months, predicts Callum Henderson, head of FX strategy at Standard Chartered Bank.

Dollar May Boomerang

Expect to see a boomerang as Kenneth Rogoff, professor of public policy at Harvard University, believes the long-run effect of the credit crisis on the greenback has to be negative.

Weakness of the Won

The fall in the South Korean won is overly excessive, says Daniel Soh, regional economist & FX strategist at Forecast. He tells CNBC why he believes the dollar-won is unlikely to go above 1,550.

RBA Might Cut Rates to Under 4%

The RBA might need to slash rates to under 4% if the Aussie-dollar falls below $0.60, says John Kyriakopoulos, head of currency strategy at NAB.

Fed May Take Rates Down to 0%

There is a possibility that the Fed might bring rates down to 0% as it tries to dig the economy out of its worst recession since the 1980s, says Kenneth Rogoff, professor of public policy at Harvard University.

Catalyst for Pushing Oil Prices Up

If heating oil prices move higher, that could push crude oil to $80 a barrel within three months, says John Licata, chief investment strategist at Blue Phoenix.

Not Bullish on Gold

Norman Chan, CIO at PCM Capital is not bullish on gold as he believes that on the industrial basis, it is a useless metal. Instead, he reveals how he is protecting his wealth using fixed income instruments.

Time to Go Bargain Hunting?

Long-term investors can consider bargain hunting in the current market environment, says Norman Chan, CIO at PCM Capital.

Underweight Emerging Markets & Asia

Shane Oliver, head of investment strategy & chief economist at AMP Capital Investors is underweight emerging markets and Asia, with a bias towards Australia and mainstream stock markets at the moment.

HSI May Fall Under 10,000 Points

The Hang Seng Index may find some stability when it falls slightly below 10,000 points, forecasts Francis Lun, general manager at Fulbright Securities.

Stocks to Flounder for Six Months

Global stock markets will likely move sideways and remain volatile over the next six to twelve months, Neel Tiku from Peak Financial Management told CNBC Tuesday.

Don't Count on Bull Market Yet

"One good day doesn't mean the new bull market is here yet," Andreas Nigg from Vontobel told CNBC. Stocks are set to remain volatile, Nigg added.

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