Capsule: Burton Malkiel, Princeton University

The best part about the year ahead will be that it will only last 12 months, Mr. Malkiel said.
JAN 04, 2009
By  Bloomberg
BURTON MALKIEL Professor of economics and finance Princeton University Princeton, N.J. General outlook: The best part about the year ahead will be that it will only last 12 months, Mr. Malkiel said. "Nobody can predict short-term market movements, but the economy is going to be very slow and that means a terrible first quarter in 2009," he said. "Eventually, near the end of the year, I think we'll start to see some movement as a result of all the liquidity being put into the system,"Mr. Malkiel added. Investors will need patience and they should not expect a quick recovery, he warned. "This will not be a V-shaped recovery, but I think we'll start to see the beginning of a recovery toward the end of 2009." Next big trend: Real investment opportunities for anyone with a longer time horizon. "For those people with a five- or 10-year outlook, both bonds and stocks are going to look attractive," he said. Biggest concern: Deflation in 2009 and inflation two to three years down the road. "We're putting enormous liquidity into the system worldwide," he said. "And as India and China continue to grow, there's going to be a lot of price pressure." Watching, reading, listening to: Book: "Enough" by John C. Bogle (John Wiley & Sons Inc., 2008). Newspapers: Financial Times, The Wall Street Journal, The New York Times.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave