Back in September we were expecting a very weak Christmas season for the retailers. Today many of the retailers reported very bleak same-store-sales for December led by a big disappointment from Walmart.
The stock market was quite weak yesterday and we can expect the same today. Reality is setting in as company's like Intel come out with bleak forecasts. The market is still in the bottoming process and given the recession is going to be long and deep stocks can't go straight up. President-Elect Obama is adding to the somber mood as he is starting to add his own dose of negative economic comments.
Consumers are weak, businesses are weak, financial institutions are weak, and thus the markets are weak. The only bright spot is the continued improvement in the credit markets. It is a long ride but in three or four years we will look back and realize that this is one of the greatest opportunities to create wealth. It won't be easy but prudent investing will be needed to navigate the trip.
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