Bloxham Stockbrokers has predicted that next year will see big government intervention programmes worldwide, deep interest rate cuts and falling input costs.
In its Equity Strategy, the stockbroker says global interest rates may touch record lows in 2009 as central banks actively fight the unfolding recession while global commodity prices will continue to fall, providing much needed relief for consumers and manufacturers.
Bloxhams says it expects the Irish economy to contract by 3% next year, while inflation will decline from 4.3% this year to 1.8%. However, unemployment is set to rise from 6.6% to 9% while consumer spending will contract by 1.8%.
Bloxhams says the Irish stock market has fallen by 75% since its peak in February 2007. In 2008, it recorded its worst performance in 225 years as it slumped 63%.
The stockbrokers say they are adopting a 'deeply conservative approach' to identifying nine Irish companies for investors for 2009. They say the companies are businesses with robust balance sheets, well covered dividends and convincing strategies.
The nine are CRH, Kerry, DCC, Paddy Power, FBD, Origin, Fyffes, Total Produce and CPL. Bloxham is broker to FBD.
