Economic Forecast Calls for Slow Recovery
The economy is predicted to grow 2.5% in 2010, according to this Wells Fargo market outlook designed for investors. Inflation will increase another 2% due to slow lending and the fact wage inflation is moderating. The stock market has also only recovered half of its losses with a modest return of 6-8% predicted on investment accounts.
Will there be a continued interest to invest in gold for 2010? Usually when the hype for a commodity is highest, the crash is directly around the corner states this link. Think of gold like oil: Most will recall the price of oil rising from 50 to over 140 dollars a barrel between 2007 and 2008, and the subsequent crash back to 40 dollars a barrel in 2009.
Consumers must remember this is the longest recession on record (since 1955) and the deepest since the Second World War. Excessive risk taking, together with exuberance in financial and property markets, had a painful effect upon the real economy states this economic forecast position.
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