Monday, March 2, 2009

Where will the economy recover first?

Where did the down fall begin? Well, it started in the housing sector. Then, it spread to banking sector. Then, it spread to insurance sector. The order in which the downturn unraveled is as follows:

1. Housing
2. Banking
3. Insurance
4. Manufacturing
5. oil & Natural Gas
6. Retail
7. Tech

How will it recover?

The economy would recover as follows.

1. Banking - Unless banks are healthy, banks can not lend. Treasury is using all the tools available to strengthen the banking sector.

2. Housing - Once money starts flowing freely, mortgages will flow freely. This will aid housing sector.

3. Manufacturing - Manufacturing sector will benefit from the stimulus package.

4. Insurance - Stable banking, housing and manufacturing will bolster insurance sector.

5. Tech - Once businesses and individuals start spending, tech sector will tech off.

6. Retail - Once public has more money, it would spend. Retail will benefit from consumer spending.

7. Oil & Natural Gas - Once manufacturing sector improves, oil & natural gas sector should improve due to demand.

1 comment:

  1. Commodities will rise first in an economic recovery. In fact keep an eye on commodity prices to find the bottom for this market.