Can the stock market crash in 2009?

2008 was a disastrous year for equity markets around the world with many drops by more than 40 percent. The lack of available credit due to the "credit crunch" has certainly taken its toll as the fall from grace seems all over the world in the banking sector. Unemployment rates are going through the roof and confidence in the economies of some of the main actors (countries) is a historic low, then there is the real estate market, please do not get me started on the housing market, the bubble has well and truly burst there. And what about 2009? Will stock markets around the world continue to fall or even crash in 2009?

The fall out from the credit crisis shows no signs of slowing, in fact things seem worse. Despite a series of measures "recovery" and "bailouts" of various government credit is still scarce. The banks seem unwilling to lend money or are they not in a safe enough position to lend. Something has to give if things are going to improve.

I personally can not see a lot of positive earnings from major companies that pass this year, but can see a lot of profit warnings ahead. What does this mean? Well one thing I'm afraid to say, heavy stock market losses.

Then there is the threat of terrorism seems ever present. What happens if the United States or one of the other major Western countries was to suffer another major terrorist atrocities? Even in this case the result would be a further heavy losses for equity markets.

All this makes the best reading for those of you hoping that stock markets will make some healthy gains this year, I hope I'm wrong, I like a bit 'of my hard earned money invested in a number of equity funds based.

In conclusion I think on average equity markets around the world will lose 20 percent of their value in 2009....