The Roaring 00's are Over

The New American Minimalism. The new "in" is conservatism.

Predictions for 2009

1) The current credit freeze...THAWS. Derivatives have peaked.
2) Reversals. Oil goes up and Treasury Bonds get crushed.
3) Stocks have a bear market rally from a grossly oversold position where stocks now yield more than bonds.
4) Commodities out perform all asset classes...in a reflationary change from current deflationary scares.
5) New rules and regulations change private equity, hedge funds and venture capital....these businesses will now be un- wound.
6) All Endowments and pension funds have to be recapitalized from the devastation done to them from fraud and other hedge funds.
7) Residential real estate stops going down and even rises in certain cities around the country...especially no income tax states like Florida and Texas.
8) Investors in the "thaw" start chasing yield and take on more risk as they exit the Treasury market.....money starts to return to the stock market but only after another 10 plus percent rally from current prices.
9) Asia (ex Japan) and Brazil are the world's best performing stock markets. Creditor nations!
10) The dollar could be key. The worst news is arguably in front of us...with Federal deficits exploding through $1.5 to $2 trillion dollars and commercial real estate set to correct....this could make the TARP plan look like a city council meeting. If the dollar loses value gold explodes higher as does the inflationary concerns.....

As the US fighter pilot says, "situational awareness" is what we train for in adverse situations. Obama will be run over by the worst ever seated congress in the nation's history....we'll soon see how smart and adaptable he is as our new president.

Danny Boy seen here heard a Madoff investor say, "This guy has a formula involving computerized trading, it's like Coke. We're not supposed to know the formula."