Fall 2008 Investment Preview

"The credit consumers got from their ATM houses is not there anymore," said Michael Martin, head of Financial Advantage, a Maryland investment firm.

The weak housing market could bottom out by the end of the year, said Charles "Chuck" Lieberman, chief investment officer of Advisor's Capital Management in Paramus. "The single most important economic number right now is that inventories of unsold homes have been declining for several months," he said.

The stock market also could have a brutal finish, Martin said.

He expects the Dow Jones industrial average to reach 10,500 and the S&P 500 to recover to just under 1200. The Dow closed Friday at 11,543, and the S&P 500 closed at 1,282.