What do you do with your money? Stocks?
Part of me thinks stocks are finished, and part of me wants to buy some indices around January/February.
The US is entering the tornado. I think most people who follow the business world predicted that shit would hit the fan in late 2008, and carry on into early 2009. After that, things will improve slightly, and we'll probably see very low economic growth for the next few years.
Everyone knew it would get bad now, and we're still hearing the doomsday scenerios. Back in June, who didn't think a couple of banks would go under? I predict AIG goes belly-up, and this gets worse. It needs to. If the Reserve decides inflation is worth "saving" the economy, and the government continues bail out, the US will pull a Japan.
Canadian banks are in much better shape than American ones. CIBC has probably been hit the hardest by sub-prime. All that being said, bad times in the US will undoubtedly make for some bad times here.
Keep in mind, the real-estate market in Toronto (the West is another story) never really ballooned into a bubble, so predicting -35% has no economical basis: My house has appreciated at around 4-5% over the last 10 years.