TORONTO - Stock markets will close out a tumultuous year this week with the final trading sessions of what has turned out to be an economic downfall far messier than anyone initially expected.
Most investors will probably be happy to say goodbye to 2008 -- the year that has been compared to everything from the tech bubble burst of 2000 to the Great Depression of the 1930s.
No matter how it's classified, the losses were ugly, and a New Years' resolution isn't going to solve this problem.
At the close of last week the TSX was down nearly 40 per cent since the start of 2008, wiping out hundreds of billions of dollars of stock values held by Canadians in mutual funds, pension plans or individual investments.
Market watchers say this story will stretch into next year and beyond as lower confidence continues to wrek havoc on already downtrodden economies around the world.
"Most people are finally getting their head around the fact that this is a very serious recession globally or possibly bordering on something worse," said John Stephenson, portfolio manager at First Asset Funds Inc.
"Pretty much everybody is just wanting to get this year in the can."
Some observers have predicted that markets could shift even lower in the new year before they finally find a bottom point.
Still, that hasn't deflated optimism entirely as the U.S. government follows through with its bailout money and the auto sector struggles to get back on its feet.
"We've got to get through this year -- it's been crazy -- and just start over," said Stephen Carl, principal and head of equity trading at The Williams Capital Group.
His wishlist for 2009: "I hope more shoes don't drop in January, and I really hope that come March that the (government bailout) money is able to do what the people giving the money expect. I hope the automakers don't need anymore; I hope the plan comes to fruition."
This week, investors will get another taste of the economy through the U.S. consumer confidence index for December, which is slated for Tuesday.
BMO Capital Markets says the index is expected to hit 45 points, compared with 44.9 a month ago. In Canada, consumer confidence is at its lowest levels since the recession of the early 1980s.
Meanwhile, the Case-Shiller Home Price Index for October, a measure of the U.S. housing market, is predicted to show a 17.8 per cent decline year over year. That's from 17.4 per cent in September.
No major economic data is scheduled for Canada, aside from auto sales numbers Friday.
"I think the general consensus is that the numbers will be bad and continue to get worse," said Stephenson.
Investors will have a chance to take a breather midweek when markets close early on Wednesday for New Years Eve, and remain closed on New Years Day. Trading is scheduled to resume on Friday.
