The Economic Outlook is back and its already October. It’s that time again to take a look at the economy in a nutshell and understand where the month will take us. The big highlight of the month is the G20 summit which is well underway and is not looking very promising, followed by the cost of Gold and finally the troop surge that the generals are asking for in Afghanistan.

But first, let’s backtrack to last month’s economic outlook and see if our predictions were accurate indeed. For September’s economic outlook, we discussed banking stock watch, consumer spending on tangible goods and interest rates inflation watch.  Banking stocks were a hot number but seem to have stabilized a bit, with most of CITI, Bank of America and Wells Fargo going up and down but really showing small signs of gains means that at this time it is no longer a hot ticket worth stalking but rather worth keeping on the back burner till late December. Consumer spending has been down and will probably go down further as the winter months usually do cause consumer spending to slow down on commodities. Interest rates on the other hand will be on the back burner and not expected to change till mid 2010.

Lets now get to October’s Economic Outlook.

Gold, Gold, gold…The price of gold is soaring or has been but we all know that every bubble has to burst and here is one to closely watch especially as the winter will probably drive prices slightly up before a major drop occurs sometime in 2010. Keep a close eye on this if you have money invested in this commodity, and remember the spike in price always occurs before a major fall.

Highlights from the G20 summit show that the tension between Israel, Iran and the US trio will be rising in the next few months. This unfortunately indicates the lack of immediate peace in the middle east and therefore more funding going to our troops in Afghanistan, which are in reality simply ready to attack Iran if necessary, because lets face it, what else is there to gain in Afghanistan? The G20 Summit despite not being as successful as some anticipated did show unity through the European Union which will help as our global economy will be suffering. Europe and Asia will become in dire need of resources as their economy is made up primarily of import/exports which have taken a significant hit in the past 24 months. The US will also be facing though times with the commercial Real Estate sector still declining across the board.

So in conclusion, our two big watch items for October will be the troop surge and its impact on our economy followed by the price of Gold which will remain a hot ticket for the next 2-3 months as major movement is bound to take place. This has been your economic outlook for October.

Related posts:

1. Economic Outlook for September 2009
2. Economic Outlook – April 2009
3. Economic Outlook Update
4. Economic Outlook For December 2009
5. Economic Outlook for August 2009