Expectations for a recovering economy and stronger markets for 2011 have faded into hopes for a lackluster year that avoided recession.
That's what the optimists are saying.
Many are more pessimistic, like Bob Janjuah, fixed-income analyst for Nomura Securities, who sees the Standard & Poor's 500 Index falling to around 700 next year, down 38 percent from where it is now
"The basic problems remain weak trend growth in the (developed market) world, which we think will continue for another three to five years, the policy errors (in our view) of the current set of policymakers, and the existing set of inadequate 'old world' policy institutions," Janjuah writes in an analysis for clients, CNBC reports.
Some have been calling for a return to a recession for a while now, including David Rosenberg, a strategist at Gluskin Sheff in Toronto.
"We have to admit that we feel somewhat vindicated, having made this call nearly four months ago to howls of derision," Rosenberg says in a daily note, CNBC adds.
"What we saw then and still see now is a full-fledged deleveraging cycle that has gone global."
|President Barack Obama
(Getty Images photo)
Many blame policymakers for keeping the world teetering on the brink of recession, including President Barack Obama, whose tax policies and regulations are fueling fear and uncertainty, which is hampering hiring and recovery.
"(Consumer confidence) numbers now match the drops seen after the Iran hostage crisis, Iraq’s invasion of Kuwait and the collapse of Lehman Brothers,” U.S. News and World Report Editor Mort Zuckerman writes in the Financial Times.
"This is a modern day depression, only this time soup lines have been replaced by unemployment checks."
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