Despite some analyst calls that markets bottomed in November last year, investors should not get too euphoric, as stocks have still a way to go lower, experts tell CNBC.
We Aren't At the Lows Yet
According to the charts, November was not the low for the U.S. markets, says Daryl Guppy, CEO of Guppytraders.com. And Michael Yoshikami, founder, president & chief investment strategist at YCMNET Advisors agrees.
Tech, Pharma, Biotech Next to Fall
"This is a fractured credit market. The biggest threat in fractured credit markets is technology gets crushed because it's a big cash burner on RND, so is pharma, so is biotech. All of these things will become a big problem," Richard Morrish, head of research at MIG Investments. "Equity markets have still got a long way to go on the downside. We haven't yet got to the real bottom end."
A Short-Term Rally for the Markets
Over the next couple of months you will be able to make money from the stock market because we have a gradual bear-market rally taking place, Philippe Gijsels, senior equity strategist at Fortis Global Markets said Friday. He warns that the rest of the year will still be difficult.
The U.S. is the best defensive stock market for the current bear market, according to Gijsels.
"Buy defensive big cap names in the U.S. for 2009," he said.
Gijsels thinks the pharmaceutical sector will still be a good investment choice for 2009, as well as the consumer discretionary sector.
He also thinks there is investment potential in the autos, media and retail sectors as resolution will hopefully come soon and the stocks have been beaten down very hard.
Stocks to Rise 35% by Year-End
2008's downtrend has hopefully been broken, so stocks in 2009 will be more positive, Sani Hamid from Financial Alliance said Friday.
He sees us possibly hitting new lows in '09 but they won't be far from the lows met in November. For 2009, Hamid suggests buying into Singaporean and Chinese stocks.
Roger Nightingale from Pointon York sees the stock market 25-35% higher by the end of the year, and right now as an excellent time for long-term investors to be investing.
Don't Get Euphoric Too Soon
Don't get euphoric too soon, advises Michael Yoshikami, founder, president & chief investment strategist at YCMNET Advisors. He also reveals his investment strategy for 2009.
Continue to Exercise Caution
One has to be very cautious when buying into a recovery as there are still shoes to drop in the U.S. economy, says Michael Yoshikami, founder, president & chief investment strategist at YCMNET Advisors.
A Painful Year Ahead for Asia
The 2009 growth outlook for most of Asia Pacific will likely be quite poor, says James McCormack, MD & head of sovereign ratings at Fitch Ratings.
HK Market May See a Short-Term Rally
Even though Steve Tse, research manager at BEA Union Investment Management expects the Hong Kong market to close lower today, he tells CNBC that he sees a short-term rally in January.
Expect a US Recovery by H2 of 2009
The U.S. economy may begin to show signs of recovery in the second-half of 2009, believes Ilian Mihov, professor of economics at INSEAD. He outlines the signs that will point to a turn in the economy.
"Stable" Outlook for China
James McCormack, MD & head of sovereign ratings at Fitch Ratings has maintained a "stable" outlook for China, the Philippines and Indonesia.