It has been a tough week for the dollar and its buyers, and I failed to make the right call on the dollarís bottom compared to early 2001 when Jupiter guided me on collapsing of the dollar for six years. The call was 100% accurate, but at the time no one thought that the dollar could move down like I predicted. This year I have been predicting for the dollar to turn around but it has been quite tough and wrong, but I still believe that it will go against what most people expect. I donít know if my reputation will survive by the time this happens, but I am nearly losing a reputation that I have gained in the course of the last twenty seven years of my astrological career. The current world that we live in is such that people remember the errors which we make, forgetting the times when all was well. Anyway, I cannot allow myself to be caught up in a trap of negative feeling, and I will therefore continue with this weekís newsletter.
DENT IN WORLD ECONOMY
In 2004 and 2005 I frequently mentioned that interest rates would rise in USA and globally, and that it would have severe negative effects on the housing markets, and today we see how bad the situation has become. I am however much more concerned about the European real estate market than the USA, as I see more severe economic problems afflicting Europe compared to what is currently happening. Indeed, I see a very sad ending to the European financial story, and my future outlook for Europe and its currencies is therefore quite negative from this stage. Those planning long term strategies should therefore be vigilant.
Negativity in the real estate market will cause a dent in the USA economy as well as in consumer spending, but the long term scenario for its stock market as well as real estate market looks positive.
Asia is running into the young age, a stage characterized by more speed, energy and activity; but as we know it is also time for guidance and caution so that the younger generation does not follow the wrong path in aggression and overconfidence. Asian investors will learn lesion any from this week and it will be quite nasty one.
Africa is fighting its own battle for survival, but a new story of growth will start after 2025, and there will be an inflow of new investments in that continent.
The Middle East region or Arab countries will try to walk on their own path but it looks like they will fail to properly manage their success, for major war and conflict lurks ahead.
For the first time Saudi Arabia is seriously thinking of breaking its currency ties with the US dollar. Indeed, I shall hardly be surprised if several other oil rich Arab nations also make announcements to this effect. For the last 15 months I have been talking about the breaking of ties by many Arab/Islamic nations from ties with the US dollar. Unfortunately, the final result will not be as anticipated, and their currencies will collapse after the initial stability. They should therefore be extremely careful, and they should maintain current ties in order to survive in the longer term. In any case, no one can change or stop destiny.
My outlook for the dollar is completely different from what most people think. If one was to conduct a poll to determine the prevailing opinion, around 95 percent or 98 percent are pessimistic of the dollarís prospects, saying that it is headed towards new lows, and others declaring that it will not be worth much and will be like toilet paper. There are those who believe that it will be in steady decline and tumble another 50 percent from current levels. I am the only one standing by the dollar and recommending buying it. Of course no one wants to believe me at this stage, but what can I do? The theory that I have been following for more than 25 years is telling me to recommend buying the US dollar against all other currencies and that people will make enormous amounts of money in two years time!
I know that I have been coming wrong on the dollar, there is no dispute about that, but I do not want to change my decision because the interest rate has been cut and every analyst and economist is talking about a weak dollar. My theory is entirely independent and I will stand by its indications: regardless of whether people heed or refuse to follow it, and I will stand by it even at the price of losing future subscribers to my newsletter.
A very important point to note is that the overall picture of my advising career shows that those who followed my indications, made huge amounts of money, and astrology made me shift from one area to another, for instance:
∑ I kept advising buying technology from 1995 to 1999.
∑ A new area I found for investors was oil and metals in 2000, and I recommended continuous buying till early 2006 and still long term I am optimistic. In the same period I recommended selling the dollar from 2001 to till early 2006.
∑ I now see a new era for the dollar that will continue till 2011. I see a great boom in alternative energy stocks within the same period, which I have been talking about for the last year.
There are reasons for mentioning the above three points: My theory picks the best fields out of all investment areas, dwelling on those that will outperform others in coming years. At this stage, my theory has picked the dollar, therefore lets wait and see, for only time will be the answer. I am aware that a lot of people are upset with me because my dollar prediction has not been fulfilled. This is similar to what I faced in early 2000 when I got them out from technology at the end of 1999 after I predicted a great crash, but technology kept sharply moving up for another four months. This is all part of human psychology, as people will not appreciate that they went into the sector at an early stage, but they will remember that they sold too soon and missed the final rally. I am not trying to justify my prediction, but its gives me strength to believe in my theory.
Well, I have said a lot about the current scenario as well as my theory, therefore let me come back to the most important part of my weekly newsletter.
Predictions for 24 to 28 September:
Thanks & God Bless