These are only my thoughts and opinions. However, since they are not influenced by any major government, political, or commercial interest they are at least honest. (I know I’m a bit jaded). Here are a few of my stock market predictions over a few different time periods.
Stock Market Predictions from now until 2012
The US equity market will continue to be highly volatile between now and the end of 2012. The US is heading into a recession, but so are much of the 1st world nations. As bad unemployment and other economic indicators continue to roll out the stock market will continue to fall. However, money will continue to flow to the US equity markets from other nations as they struggle and their currencies fall. Interest rates will remain low, and quite possibly go lower so the savers will continue to be hurt. Nowhere to hide your money. My best bet is cash and the highest stock dividends in US staples. (Food, Medical)
US Stock Market Predictions for 2012
The stock market throughout 2012 will remain choppy and overall flat to slightly down. The government will be unable to accomplish anything as they are way too concerned with their reelection campaigns and with the republicans controlling the house, democrats controlling the senate, and a democratic president no real bills will get passed. The state of affairs as they are now is the law of the land until after the election. Since the majority of the country is very unhappy with economic affairs in the United States then market sentiment will continue to be bad. I intend on keeping tight stop losses, even on my 401k, to prevent large losses, buying in after big market drops, and practicing my day trading skills. Good traders will make great money. Bad money managers and gamblers will go broke.
US Stock Market Predictions for after 2012
After the elections the market will improve if either party takes control. Doing something will seem better than doing nothing. My personal feelings are if the direction is towards debt reduction then 2012 will remain flat, but will become very strong going forward. If the direction is towards stimulus then 2012 could be strong, but after that we could begin to see stagflation as the interest on debt due to increased debt with increased market rates will become too large to handle.
US Stock Market Predictions for the Long Term
The US is still the most successful nation and there is no better nation to grow going forward. The Europeans are trapped in socialism with Portugal, Italy, Greece, and Spain holding them down, the Chinese are trapped by their communism where eventually the billions of poor will revolt, and the commodity rich Africans have no political strength. The US will succeed and is the best bet for running a small business from, owning any asset class, and long term stock market investments.
