Japanese Jitters

The news that the Japanese economy contracted at its quickest pace in 35 years, and the lack of focus and direction from the weekend summit of Group of Seven finance ministers did little for the markets mood world wide.

Japan's worse-than-expected fourth quarter GDP numbers were a sobering reminder of the toll the worst economic downturn in decades is having on Asia's export-driven economies. The world's second-biggest economy shrank 3.3 percent from the previous quarter, or at an annual pace of 12.7 percent.

In the mean while the old metal, gold, seems to be ready for a new leap into new heights. I hope you have some investment in that less loved metal. I have written about it before and would reiterate that it is on the way to doing some amazing jumps sooner rather than later.

The prognosis for the equity market is in my view not that good. The last year, 2008 might just be the beginning of the trouble. We might see the troubles continue in 2009 and the equity culture might suffer from a lack of interest from the common investors.

I wonder how the huge mutual fund industry will sell the idea of long term returns to their investors!