Rapid economic recovery isn't likely during 2009, and American investors will have to grapple with a major crisis of confidence.
Over the next few months, there will be a lot of focus on the ongoing effects of the credit crisis and regulatory reform. "At the same time, we want to continue to focus on the core investor protections issues."
"A big transition will be [occurring] in the international marketplace," said Mr. Schreiner, who manages money using probability-based measures and technical tools, and also uses outside managers who employ quantitative strategies.
Commercial real estate is heading into its worst year since the industry's crash of 1991-92 and likely won't see a significant rebound until 2011 at the earliest, according to industry experts.
"It's going to be a tough year for advisers. They will experience real pressure in profitability and in attracting clients, but I think we will see that the strong firms will emerge even stronger, while some of the weaker firms will merge."
Although political sentiment is warming to environmentally sensitive policies, the green movement may not be ready for a boom in investing in 2009.
The economy will continue to weaken, but the financial markets will look at the steps taken by the federal government and react in a positive fashion, Mr. Vahanian said.
investors will likely continue to yank assets from mutual funds, more funds will close, and fund launches will come to a crawl this year, according to analysts.
By some measures, 2008 was one of the darkest periods in the history of the hedge fund industry.
The country is about to enter "an era of sustainability" that will affect both the economy and the financial markets.
