The effects of government action domestically and globally will be felt in a positive manner, with the recession ending in the second or third quarter, Mr. Klosterman said.
Mr. Kleintop predicts that the U.S. economy will emerge from the recession in the second half of 2009. He also expects the economy to experience a deflationary period earlier in the year, leading to the return of inflation toward its end.
All signs point toward a brighter 2009, according to Mr. Richardson, with one caveat. "It's almost too easy to predict the stock market is going up in 2009," he said. "Of course, I'm assuming the success of the government's efforts."
Mr. Slott is convinced that taxes will go up in 2009 and believes that advisers should work with eligible clients to help convert individual retirement accounts to Roth IRAs.
Rapid economic recovery isn't likely during 2009, and American investors will have to grapple with a major crisis of confidence.
The best part about the year ahead will be that it will only last 12 months, Mr. Malkiel said.
Although Mr. Regan isn't optimistic about the economy, he does foresee a strong year for wealth management companies who cater to high-net-worth investors.
"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.
The markets will probably rebound in 2009, but it's not a sure thing, Mr. Molumphy said. An "extended or protracted" economic recession could delay a market recovery until 2010, he said.
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."
The country is about to enter "an era of sustainability" that will affect both the economy and the financial markets.
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.
"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."
As the art world's next major round of auctions begins this month, buyers and sellers will encounter a market as depressed as that for stocks and real estate.
The Madoff Ponzi scheme has shocked investors but offers many lessons. The first is that no one can rely on the Securities and Exchange Commission to spot all, or even most, of the bad guys in the financial system before they hurt people.
First time jobless claims fell by 94,000 for the week ended Dec. 27, the Department of Labor reported today.
The Conference Board Consumer Confidence Index fell to a reading of 38 in December, down from 44.7 in November and matching the record low set in October.
What do Wall Street investment banks and retired investors have in common? They both must live off the return on their capital.
Advisers’ confidence in the economy and the stock market improved for the second consecutive month in December, according to Rydex AdvisorBenchmarking’s Advisor Confidence Index.
