As the ongoing slump in the global economy sent national governments scrabbling for ways to prop up their countries’ future, CNBC asks if protectionist moves such as ‘buying American’ will really benefit the economy. One analyst said yes, for now, but the global economy could pay the price later.
The 'Buy American' Debate
“In the short term yes, if you restrict your purchases to American companies clearly that will lift up the US economy faster than if you allow them to import the equivalent goods,” Arjuna Mahendran, managing director at HSBC Private Bank, told CNBC.
“(But) the short term has to be traded off against the longer-term good of the global economy,” Mahendran said.
“You’re not going to see a resolution of this nationalistic fervour in the short term, but eventually I feel that better sense will prevail,” he added.
US Housing Market Recovery Likely in 2010
A recovery in the US housing market won't come until the end of 2009, or into 2010, predicts Mike Larson from Weiss Research, speaking to CNBC.
Strong Gold Demand a Phenomenon
The demand for gold is strong, saya Mark Hansen, director of Trading CPM Group. He tells CNBC that it is a phenomenon in the market.
Credit Market Will Lead Recovery
As the equity market is expected to be stuck in a trading range throughout the first-half, Norman Chan, chief investment officer of PCM Capital tells CNBC that he is banking on the credit market to lead the recovery.
Adopt Bottom-Up Stock Analysis
Pearlyn Wong, investment analyst at Bank Julius Baer urges investors to maximise on any incremental stock-price improvements. She discusses this in context of the BOJ's share buyout scheme.