Dow Chemical's (DOW) Perfect Pitch

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Dow Chemical (DOW) reported earnings today. Beyond all the numbers, segment earnings, and geographic data, there was only one important thing.  "In our view, we will likely see a global recession through most of 2009."

The forecast has special weight coming from Dow. It is not just a $60 billion company. It is a firm which does business in a substandial number of sectors and does it in almost every country in the world.

Dow has built itself into an operation which spans from chemicals to plastics to agricultural products. It said the prices that it charges customers were up 22%. That is a sign inflation may not be wrung out of the global economy.

But, the real news is Dow’s view of the future. Very few companies have been so pessimistic.

Douglas A. McIntyre