"There is tons of money sitting on the sidelines and companies have tons of money sitting on their books."
Issues that affect the retail segment of the financial services industry may not win immediate attention from Congress and President-elect Barack Obama’s administration.
The stock market hasn't hit bottom yet, but by the end of 2009 it will have turned positive.
"Most of the bad economic news that can possibly happen has already happened."
Mr. Dinallo will focus on securities lending this year, asking each life insurance company about its approach toward these transactions and preparing to evaluate the carriers' programs.
Despite the market turmoil, which caused a decrease in assets under management in 2008, financial advisers and the independent broker-dealers who serve them will see business boom in 2009.
"I think it will be a little bit bumpy for the economy and the markets for the first few months of the year, but then we will gain some traction," Mr. Glovsky said. He thinks the second half of 2009 will be strong.
Market predictions have little value for Mr. Lamb, but he is willing to hazard a guess that later this year, "we may see a glimmer of hope that the world is not going to zero." At that point, a vigorous rally could ignite, he said.
The economy will continue to be under pressure from rising unemployment and declining industrial output through the first half of 2009. Unemployment will reach 8.5% to 9% by yearend.
In the third or fourth quarter, he thinks think money will come back to the industry with a vengeance. Pension funds are going to realize that their asset allocations are out of whack, Mr. Lo said.
