MOONSHINE

The Chairman of Exxon called ethanol "moonshine" and stated his company has no interest in it....moonshine has been moving up in price year to date along with its key ingredient corn!

How Does 2007 Play Out From Here?

1) Peak Oil is realized..end of an era...New technology boom follows
2) Agriculture will experience boom times not seen for a generation.
3) 1+2='s Inflation
4) 1+2+3='s Higher Interest Rates... bad for hedge funds
5) 1+2+3+4='s Increased Volatility ...bad for hedge funds
6) Bernanke is caught behind the curve (Yen carry trade explodes) also bad for hedge funds!
7) Asia (now with Japan) continues to boom..nothing like anything we have seen before ..their markets (China) go much higher.
8) Commodities metals and materials go much higher....demand exceeds supply
9) Real Estate is ok to higher..let the weak holders sell and move on...
10) The Tape (the stock market) is saying look at the break out of cyclicals...the wall of worry rally continues!
11) Private Equity tops out..prices are too high and the rising cost of capital (rising risk premium) stops the arbitrage...also bad for hedge funds

The biggest challenge for many people is now very similar to last year in that they are not beating the general averages performance, under weighted Asia and over trading their investments. Plus now they are going to spend the next three years trying to get out of their hedge funds investments.

Danny Boy seen here is looking forward to the day we break above Zero for his morning walks as they are a bit too cold right now.