2011 Stock Market Predictions

I have no idea what will happen in 2011. None whatsoever… But who would? Main Street has just about given up on Wall Street, withdrawing some $77 billion from mutual funds. We’ve watched as Bernanke lied to us about dollar monetization and inflationary threats… We witnessed the Fed pump billions into the pipelines, the fight over health care, Greece’s implosion, imbecilic actions in D.C., stupidity on trading room floors, unrest in Europe, dollar devaluations… and so much more. And someone is supposed to know what’s coming next? As we say goodbye to 2010, here’s what the smart money seems to be betting on: Commodities will continue to explode. Gold will rally to $1,500. Silver will break $30… again. Copper will nail new highs. And oil could easily run amok above $100 a barrel again. Coal will spike higher. FBR Capital just upped 2011-2012 coal prices by about 9.5% and 5.8%. “Part of our steam-coal price forecast is tied to higher exports and raising our natural-gas price forecast to $5.50 per thousand cubic feet (Mcf),” they said. And there’s news of power plant coal shortages in China, which supports higher demand. Buy if you haven’t yet. Rare earth stocks will skyrocket on supply-demand issues. China is increasing tariffs, and there’s no end to low export quotas out of China… Molycorp (MCP), Rare Earth Elements (REE), the Rare Earth ETF (REMX), and our $1.50 Greenland stock will pick up momentum. Buy rare earths now. Housing will not recover— not until 2014 at the earliest. And banks will suffer. Mortgage troubles are rising as prices continue to fall in vulnerable markets; there aren’t enough buyers to pick up the overhang, declines, or coming foreclosures. Even RealtyTrac doesn’t see a recovery until 2014. And don’t forget that mortgage rates will rise again in 2011, dampening any demand and cutting back on affordability. The agflation threat will continue to increase …

Follow this link:
2011 Stock Market Predictions

Tags: , , , , , , , , , ,

About the Author ()

Leave a Reply

Your email address will not be published. Required fields are marked *