Banach Wealth Management Jan. 04, 2009 Letter
2008 Financial Markets Review
Analyzing Awful Investment Results
Yet First Half 2009 Potential Improvement
Key Points
- 2008 Total Returns
S&P 500 (903) -37%
US 10 Yr Bond (2.22%) +28%
NASDAQ (1577) -40%
Foreign (EAFE) Stocks -43% - U.S. GDP expected contraction -0.4%
- 2008 earnings expected decline -15%
- Huge 2008 investment losses; however,
First Half 2009 partial recovery expected
Executive Overview
Nearly all asset classes suffered extraordinary
2008 losses. Leveraging (debt financing) of all
assets decreased along with a dramatic decrease
in risk taking. Equity markets illustrated by …