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Another Jubak article.

Check out this part:


"But the extent of the destruction is smaller than it seems while we're in the middle of it. When the panic has passed and we can look out at the world with something like sanity again, what will be most striking is how much the global economy after the bear market resembles the global economy before the bear.

Oh, sure, thanks to the financial crisis and the bear market, money will be more expensive and harder to raise, and that will cut into company profit margins. Volatility will almost certainly be higher as the financial markets soar and plunge while the world's central banks try to figure out how to take excess cash out of the system without creating another crash. The recession will be painful and extended.


The stock market has had huge sell-offs and quick rallies in the past several weeks, but it's been stuck in a trading range the whole time. That's what happened in 1987, and it's the likely scenario for the rest of 2008, Jim Jubak says.

But the big trends driving the global economy will still be with us. For example, the world is still aging -- rapidly. The bear market hasn't changed that. Nor has it diminished the need for retirement savings (although it has diminished the amount of retirement savings) or the profits to be made from managing that money.

The bear market is just a blip in the rise of the world's developing economies and the huge demand for everything from oil to sunglasses created by the growth of a middle class in China, India, Brazil and the rest of the gang. The bear market hasn't made oil or copper easier to find or cheaper to produce. In fact, by restricting capital, it may have guaranteed tighter supplies over the coming decade. (See my Oct. 17 column, "Be ready for the commodity comeback.") And it hasn't changed supply and demand in the agricultural sector, which promises higher food prices and increased demand for corn, wheat, pork and chicken."

http://articles.moneycentral.msn.com/Investing/JubaksJournal...
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