Thursday, March 6, 2008

2008 Predictions Part III of IV

3. Commodities, Cigarettes, and Green Energies
will continue to move on Wall Street.
Rationale:  While Wall Street continues to deal with deflation…
the housing crisis…run-away debt…and growing concern about
the U.S. dollar’s strength…there will be continued interest in
these sectors
 A.Precious metals are a classic hedge against deflation,
as are varied commodities. As Bernake is caught between
a deflating dollar due to increased liquidity…and lower
interest rates to keep businesses and consumers borrowing,
it is a holding pattern that will continually benefit commodities.
Gold at $1500.00…
B.America’s original business tobacco will never go out of style.  
Sure, there are people in the
United States who have regulated
smoking, others who have sued the tobacco companies for health
related issues. Cigarette companies will look abroad to developing
countries in the
Pacific Rim to boost revenue.
No government regulations? No problem!
C.While the original hype of green energies may have worn off
(i.e. corn based ethanol will cost approximately 5.00 per gallon),
it is becoming apparent that renewable sources of energy may
be the wave of the future. Look for the heavy invest in R and D
to start paying off by mid- summer. Battery powered cars? Maybe!
D.Possibility of merger mania taking place.  
Financials insurance companies, banking, and brokerage houses
are all in play with a strong foreign dollar, and a weak U.S. dollar.
Foreign interests may see that some
U.S. businesses are on sale.

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