10:10 Economy: Financial Predictions for 2009

Two leaders from the financial sector pull out their crystal balls in an attempt to gaze into the economic future.

"It's kind of like we're entering into a hurricane and people know we're entering a hurricane, but people don't know if it's a one or a five."

Jeff Krogh is the Senior Vice President of Stifel Nicolaus and even his three decades in the financial sector isn't enough to guarantee anything about the 2009 economy. But he is sure of one thing..

"We know for sure the gross national procuct is going to be down significantly. This is probably going to be the worst quarter. The fourth quarter that we're in now."

Krogh predicts the next six months will be rough, but things will improve soon after bottoming out.

"There's going to be massive Stimulus.. Tax Cuts. The Obama administration is going to put it in. And he's put in some very very talented people"

Krogh says the best thing going for the country is Ben Bernacke. Pointing out that the current fed chairman did his PHD in the depression.

"He knows the mistakes that's been made and he's doing just an incredible job."

Scott Laue with Savant Capital Management says when it comes to the economy, history tends to repeat itself. So to predict for 2009 it may be best to look back at 2008.

"2008 was an awful terrible year as far as the economic and financial markets are concerned. We saw the S and P drop by over 40 percent so far from year to date. And that's the worst year since 1931."

According to Laue says the most import key to achiving a recovery is consumer confidence.

"As they become more confident, both in terms of their job and pay increases, they will go out and spend money and that will help spread the economy both nationally and locally "

Krogh says that it is a good time to look at the bond market, with record yeilds for investments other than treasuries. In fact he calls it an opportunity of a lifetime for the older investor and people who are interested in income.

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