Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Coronavirus Infection Spread and Deaths Forecast 2020 - Video - 28th Jan 20
Is an Accommodative Fed Bullish for the Stock Market? - 28th Jan 20
Trillion-Dollar Stock Market Cap Club - 28th Jan 20
Corona Virus Wuhan Global Pandemic 2020 Deaths Forecast and Market Consequences - 28th Jan 20
Palladium Surges above $2,400. Is It Sustainable? - 27th Jan 20
THIS ONE THING Will Tell Us When the Bubble Economy Is Bursting… - 27th Jan 20
Stock Market, Gold Black Swan Event Begins - 27th Jan 20
This Will Signal A Massive Gold Stocks Rally - 27th Jan 20
US Presidential Cycle Stock Market Trend Forecast 2020 - 27th Jan 20
Stock Market Correction Review - 26th Jan 20
The Wuhan Wipeout – Could It Happen? - 26th Jan 20
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Stock, Commodities and Financial Market Forecasts for 2008

Stock-Markets / Financial Markets Dec 28, 2007 - 12:34 AM GMT

By: Money_and_Markets


Best Financial Markets Analysis ArticleLarry Edelson writes: I've enjoyed spending time with my loved ones this Christmas here in sunny, South Florida. It's so great to have the whole family together!

My hope is that your home is also filled with warmth and joy this holiday season, and I wish you and your family a very happy, healthy and prosperous New Year!

Right now, let's turn down a glass to celebrate our investment results this year and talk about my general forecasts for 2008.

This coming year is going to be full of twists and turns. But if we navigate them correctly, which I believe we will, it will also be one of our most profitable years ever.

My yearly forecast for all the markets — along with my initial core 2008 recommendations — will be detailed in the January 2008 edition of Real Wealth Report .

But for now, let me give you a glimpse of my big picture view for 2008 ...

Forecast #1: More Asian and Arab Money Will Pour Into The U.S.

Foreign investors in the Middle East and Asia are going to use more and more funds from their oil revenues and our trade deficits with those regions to bail out many more U.S. companies ... and to make strategic long-term investments.

 China's sovereign wealth fund, China Investment Corp. (CIC), has already scooped up 9.9% of Morgan Stanley for $5 billion ... and spent $3 billion for a 10% stake in the Blackstone Group, the largest private equity investment firm in the U.S.

 CIC has $200 billion at its disposal, with hundreds of billions more on tap, courtesy of Beijing's $1.435 trillion in reserves — which is enough to buy 10% of the entire USA!

 Singapore's Temasek Holdings, which has more than $100 billion in assets, has already bailed out Merrill Lynch with a $5 billion investment.

 Abu Dhabi's Investment Authority has bailed out Citigroup with a $7.5 billion, 4.9% stake. ADIA has $875 billion in assets in its coffers.

And now, Saudi Arabia is setting up the largest sovereign wealth fund in the world. It's set to capitalize it in early 2008 with a whopping $900 billion!

As natural resource prices surge and the mountain of U.S. debt grows toward the sky, sovereign wealth capital from Russia ... Brazil ... Venezuela ... Norway ... Sweden ... and many other countries will flood into the markets.

Forecast #2: China and India Will Continue To Boom

I just came back from China and contrary to popular belief, I saw no signs of a slowdown, whatsoever.

My 2008 forecast ...

"China will once again put in 10%-plus GDP growth. And most investors and analysts will get China wrong. Again."

The key to understanding China is getting an on-the-ground view there, like I do.

Take the country's pulse ... see with your own eyes what's going on ... talk to people from all walks of life ... and most importantly, read between the lines when it comes to Beijing.

For every "policy-tinkering" and "valve-tweaking" you hear about that suggests a slow-down in China, always keep in mind that Beijing is simultaneously opening up other valves and implementing new policies that keep the economy growing.

For example ...

China's recent interest rate increase was largely offset by a near simultaneous policy decision to double the amount of money foreign investors can put into China's banks and financial institutions.

So on the one hand, Beijing tightened its money supply, while on the other hand, it let more foreign money come into the system.

Beijing's recent directives to curb loan growth are also misdirection moves. Everyone (outside of China) has made much ado about this, but they fail to tell you the details.

Yes, Beijing is curbing loan growth — but primarily in the urban areas! In the rural areas, to help close the wealth gap, Beijing is actually encouraging loan growth and directing over $500 billion in infrastructure investment over the next five years.

As China's population booms, a massive upgrade to its healthcare system is underway.

On top of that, the Chinese government recently approved a $700 billion upgrade to the country's healthcare system in the rural regions .

Much of the same is happening in India, where more millionaires are being created daily than in any other country except China.

I expect more than 9% GDP growth in 2008. Consumer spending should keep growing at about a 6% rate, fueling the rocket that is the Indian economy.

Forecast #3: The Dollar May Stage A Brief Rally, But Don't Touch It with A 10-foot Pole

It's already started to rally. But with central banks around the world already having pumped in more than $750 billion of new money and credit — with more money-pumping coming in 2008 — the dollar's long-term downtrend is very much intact.

And don't kid yourself: Washington wants a lower dollar. It's the only way the U.S. stands a chance of not being crushed by its mountain of debt — because it will devalue the currency and inflate asset values against which those debts are held.

This is perhaps the most sure-fired economic principle you can bet on, now, in 2008, and even in years to come. The dollar's value will continue to lose purchasing power. Simultaneously ...

Forecast #4: Inflation Will Startle Almost Everyone In 2008

You've already seen the first shots across the bow ...

November's Consumer Price Inflation showed wholesale prices jumping higher and faster than at any other time in the past 34 years.

Coming in 2008: More surprises to the upside in inflation. And realization that inflation is running far above Washington's estimates.

Inflation is a self-fulfilling cycle. As prices start to rise and the public perceives prices tomorrow will be higher than today, they start to pay up for goods and assets.

That, in turn, leads to yet higher prices ... more inflation ... and more pressure on the dollar.

Inflation will be the main economic topic in 2008. You can count on it.

Forecast #5: Resources and Select Foreign Markets Will Outperform

In order to preserve your money's value and make big profits to boot, focus on ...

Natural Resources ...

Wheat is poised to explode in 2008.
  • Gold's bull market is set to continue next year, reaching new record highs above $1,000 an ounce.
  • Platinum has just hit record highs and is set to move even higher in 2008.
  • Oil is set to explode well past $100 a barrel.
  • Food and other soft commodities such as wheat, corn, soybeans, sugar, cocoa, rice and coffee are all set to make substantial gains in 2008.

The opportunities will be tremendous and varied. But price swings will be wilder than ever. So timing them will be crucial. And stock selection will be absolutely critical.

Asian and African Markets ...

Expect a major new buying opportunity in China's and India's markets in early 2008.

I'm talking one that will rival any of the past several years!

The stock market pullbacks occurring in both countries are nearly complete, and the next leg up in these dynamic markets is about to begin.

Also expected to spin off large profits in 2008: Frontier markets in Asia and Africa, in countries like Vietnam and Cambodia, Botswana, Cote d'Ivoire (formerly the Ivory Coast), and South Africa.

A Lucrative Opportunity To Grow Your Nest Egg

In 2008, I will report to you on the aforementioned markets from my first-hand, in-the-trenches perspective.

As a Real Wealth Report subscriber, you'll naturally receive every profitable report I write, every rewarding recommendation I make in the newsletter, AND my special, million-dollar flash alerts.

If you're not yet a subscriber, I strongly encourage you to join now and hang on for what could be your most profitable investment year ever.

You won't want to miss January's Real Wealth Report 2008 forecast issue so you can get my core recommendations for 2008 ... plus every benefit that active subscribers already get, including 12 hard-hitting monthly issues ... flash alerts ... all my buy and sell signals ... and full access to my website.

Click here now to take advantage of this special New Year's offer and start your risk-free introductory subscription to my Real Wealth Report .

Best wishes and happy New Year,


This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit .

Money and Markets Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules