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
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

The Three Financial Market Trends That Will Define 2011

Stock-Markets / Financial Markets 2011 Dec 22, 2010 - 01:50 PM GMT

By: Chris_Kitze

Stock-Markets

Best Financial Markets Analysis ArticleIt’s that time of the year when analysts and economics make financial predictions for the year ahead. And it is time for me to throw in my two cents’ worth as well. I believe that four financial trends will shape and define 2011. Here they are:


Gold will rise in price again in 2011. Gold stocks will be amongst the best stock sectors for investors in 2011.

As I sit down to write PROFIT CONFIDENTIAL this morning, the price of gold bullion is up 27% for 2010. Many of the gold stocks recommended in our various financial newsletters were up over 100% this year. I believe that trend will continue in 2011, because of the two other financial trends below that will establish themselves.

The U.S. dollar’s long-term downward trend will recommence in 2011.

After getting near a record low against other world currencies in early November, the U.S. dollar has been rallying. In my opinion, the greenback has been going up for the simple fact that the euro has been going down in value, as country after country in Europe gets its bond ratings downgraded. The hard fact is that euro countries own very little in U.S. Treasuries when compared to other countries. In October of 2010, the five biggest owners of U.S. Treasuries were: China, Japan, the United Kingdom, Brazil, and Hong Kong. No euro country even made the top-10 list!

Because of bond trader focus on European countries (I think the bond traders are making a fortune shorting the bonds of troubled euro countries), the trend for a stronger U.S. dollar may continue in the first or even second quarter of 2011. But medium- to long-term, the greenback will go down, as it simply succumbs to too much debt backing the currency.

Interest rates will rise in 2011. Utility stocks and U.S. Treasuries will not be good investment for investors next year.

Long-term interest rates in the U.S. started to rise in October. Specifically, the yield on the bellwether 10-year U.S. Treasury has risen 38% since the first week of October 2010 to today. I believe this trend will continue as: (1) foreign investors demand greater returns for buying bonds of a country that is drowning in debt; and (2) all this monetary liquidity that has been pumped into the system to save us from the Great Depression II will result in inflation.

When 2011 ends, another $1.2 trillion to $1.5 trillion will be added to the national debt. The U.S. is taking in between $100 billion and $125 billion less a month than it spends. Now that the Bush tax cuts have been stayed, we know the only big revenue source can be people/companies paying more tax because they are making more money. Incomes will not jump in 2011; the economy is still very fragile. There has been no meaningful reduction in our annual deficit, no austerity measures introduced like in European countries.

We all know that the prices of bonds and utility stocks decline as interest rates rise. I won’t own any of either in 2011.

Michael’s Personal Notes:

Gold just can’t get a break. The metal’s been rising for eight or nine consecutive years now and it gets no respect.

My broker tells me not to buy anymore gold, because it is in a bubble. Bloomberg ran a story on Monday with the headline, “Soros Gold Bubble at $1,384 as Miners Push Buttons.” Other major news sources have been writing negative “bubble” articles on gold’s bull-run.

The more negative news I read about gold, the more I love it. As long as there are doom-and-gloom people out there shooting their mouths off about gold being a bubble, gold bullion will rise more in price and my gold related investments will rise more in price.

Watch this video to get just one reason why gold bullion will rise in price:


What the Market Stands; Where it’s Headed:

You’ve got to love this market. Slowly, but surely, it just keeps rising, which is great for us stock market investors. With very little coverage in the major business newspaper or on the popular financial Internet sites, the Dow Jones Industrial Average has moved up to the same level it was at in August of 2008.

As I have written for the majority of 2010, the bear market rally in stocks that started on March 9, 2009, is alive and well.

The Dow Jones Industrials opens this morning up 10.6% for 2010.

What He Said:

“The conversation at parties is no longer about the stock market; it’s about real estate. ‘Our home has gone up this much’ or ‘Our country home has doubled in price.’ Looking around today, it would be very difficult to find people who believe that one day it could be out of vogue to own real estate, because properties would be such a bad investment. Those investors who believe a dark day will never come for the property market are just fooling themselves.” Michael Lombardi in PROFIT CONFIDENTIAL, June 6, 2005. Michael started warning about the crisis coming in the U.S. real estate market right at the peak of the boom, now widely believed to be 2005.

read more on: www.profitconfidential.com/...

By Chris Kitze

http://beforeitsnews.com

A long career in digital media led to Before It's News, the People Powered News site that is quickly becoming a leading source for alternative news. We've got a great team of very bright and hardworking people with an incredible market opportunity that's been handed to us by a corrupt media and government. We're here to help you get your news out, that's why this site exists.

© 2010 Copyright  Chris Kitze - Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - 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