Capsule: Burton Malkiel, Princeton University

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.