Retirement Outlook from the World Money Show, Toronto, October 2012

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    • Stock markets will plunge. The Dow will fall to 6000, a loss of 55% from current levels.
    •  The TSX will drop to 7500 in the short term and ultimately to around 6000 as well. To put that in perspective, the TSX low in the 2008/2009 crash was 7479.
    • The Canadian real estate market, especially in Vancouver, will experience a real drop.   It was predicted that home prices in Toronto would drop 33% to 50%.
    •  The Chinese economy will stall, and could become the greatest economic bubble in history.
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Harry Dent*

     

  •  There will be a modest world economic recovery in 2013, with the United States taking a leading role.

 

  •  The United States Federal Reserve Board will spend $40 billion a month buying
    mortgage-backed securities for an indefinite period.

 

  •  There is a concern that US politicians will not be able to prevent the so-called “fiscal cliff” looming at the start of 2013.  If that event happened, it would mean $528 billion being pulled out of the US economy.
    Michael Gregory

     

  •  There will continue to be economic uncertainty in Europe, with the potential for Greece to withdraw from the euro zone.

 

  •  The current slow growth situation will likely persist for the next couple of years.

 

  •  A blow up in the Middle East could further unsettle markets.

 

  •  The world economy will be affected by the outcome of the US presidential election.

 

  •  Because of the quantitative easing initiatives in the United States, gold prices will be stimulated.

 

  •  The US economy should outperform the Canadian economy.
  • Gordon Pape

     

    *In the late 1980s, Dent forecast that the Japanese economy, then the darling of the world, would soon enter a slowdown that would last more than a decade. In the early 1990s, he predicted that the DOW would reach 10k. Both of these predictions were met with much
    skepticism, and yet both eventually came to pass.

     

Ted Wernham
Ted Wernham
Ranked # 1 in London by MDRT, the Premier Association of Financial Professionals. retirement income manager, Host Retirement Ready! Radio on AM1290 Ted Wernham