We will expand more in our Q 1 2009 Newsletter, but in the interest of time we wanted to highlight the key items we are watching currently for positive signs in the capital markets.
1. Very short term treasury rates need to rise. Currently the 1,3, and 6 month treasuries are yielding almost zero, we need to see those rates rise.
2. Company buy outs need to commence. Valuations are low, brave/smart companies need to step up to the plate and begin buying out smaller companies at great prices.
3. Residential housing prices need to stabilize. Home prices continue to fall, although at a slower pace, but we need stabilization. A second way to review this is to watch inventory. We are currently at almost one year’s inventory, we need this to fall substantially.
4. Investor sentiment needs to become more positive. In Q 4 2008 investor sentiment fell to all time lows, we need this to trend more positive.
The end of the year keeps us busy for the first few days, so please bear with us as we will continue our more rapidly postings in the next few days. JK