2009: Here We Are

2008 ended on an up note. The economic data was weak and will continue to be weak but we can at least start the year with a clean slate. 2009 promises to be filled with many surprises, both good and bad. It is important to invest in strong liquid companies and try to prepare for the unknown. Risk management was clearly missing in 2008 but should be the key focus for investors, banks, investment banks, corporations, non-profit entities, and every ordinary citizen.

We don't know where the Black Swan will appear but it will. A week ago, we tried to highlight the good surprises and the bad surprises that might affect the markets in 2009. Invest smartly, diversify one's risk, and try to prepare for the unknown. A year from now oil could be at $80 and the stock market could be 40% higher but from now till then a major war could break out and cause instability in many markets. We don't know what is going to happen but it is important to be able to capture the upside with good surprises and minimize the damage when a negative event appears.

Let's be opportunistic as we start 2009 but be cautious as we meander through this difficult economy and uncertain stock market.