Barkly looks into 2006

 


Predictions for 2006

a) International equities remain strong relative to the US Domestic markets..CEE, EEM and IBN
b) The hydrocarbon industry experiences peak in profit margins but not earnings. Selectivity is critical in investment selections. PMBIF, CNX, CNQ,COP, CVX, FDG. Look to add to WMB on weakness. Crude could easily move to the high 40's low 50's and create a new buying oportunty. The group will be a market performer for the year. The single biggest challenge is the replacement of reserves...it will get worse and worse..we like BR being aquired COP. We will see more of this consolidation.
c) The US Stock market will again be around long term trends with a 5 to 10% type gains..but with a continued trading range that costs dearly all traders trying to catch the moves.I would expect to be on the low side of this number..
d) Asset rich investments that offer a total return, a continued strong balance sheet and top line growth are key.....PCL, HMT, SYT, BG, MEL, AC, HBC. e) Housing flat lines and that is ok..it will keep interest rates more or less unchanged as the Fed will be less concerned on this asset appreciation. The old adage you make money when you buy someting..not when you sell it! Many blue chip stocks still sell for what they did in 1995. So it depends when and where you bought...location location location!
f) New Investment Specs for tax loss over selling and too big to fail and turn arounds in 2006? F, AFFX, FS.
g) Gold seems like a no brainer for many reasons...stash some away..GLD, NEM, GFI