Markowski Comments

Are US stocks poised for a rebound? Christmas buying has gotten off to a lousy start; but, aid to the auto sector that will likely be forthcoming next week – if President Bush turns it down, President-elect Obama will do it once he takes office – a $500 billion stimulus package and further qualitative measures by the Fed will add up to an economic turnaround by the middle of next year. As I have noted before, the current and next quarter will prove to be quite rotten in terms of posted growth rates, that should be about 3% on average, but a turnaround could happen once housing stabilizes. That, I believe will happen next spring and could result in what appears to be an initial V-shaped economic response, even if growth then reverts to below trend for a while.