KEY HIGHLIGHTS OF 2008 - Astrological predictions for world financial market of 2008
I always come out with yearly brief outlook in the first week of every New Year so my members can have a broad picture of the year. From 2001 to 2005 Metals, oil, commodity related stocks, weak dollar, coffee, and orange juice remained top in my list of my advice. 2006 Grains came in the top list with metals and oil. Everything went very well, as predicted, from 2001-2006 except for my stock market prediction was off-track.
In late 2007 Dollar came in my list with alternative energy stocks. We all are aware that my favorite solar sector has done unbelievably well in 2007 but US dollar performed very poorly. On few occasions, commodity currencies had sudden corrections but over all I was absolutely wrong on Dollar prediction. I don’t want to cry on what already happened but it is always good that I shouldn’t forget about my wrong once because accurate and inaccurate both walk with you like train tracks.
Let us buckle up and go for a ride called “future of financial market of 2008”:
2008 holds mix trend for metals. From 14 of January metals will remain negative but from middle of February I see sharp rising in metals and upward trend shall continue till. From May 2008 metals will have negative trend and fall will be more than what they gained during Feb to Mid-March. From July to October, metals will trade weak but from Mid November through December metals will trade positive.
Metal stocks shall perform well in patches. First three month of year starting they will remain positive but from end of March metal stocks will have major setback for whole year. So I don’t recommend investors to hold gold and silver stocks after Mid-March 2008.
2008 will remain unfavorable for energy from 4 of January. I don’t see any worst hurricane or weather related damage. Geo-political situation will remain unstable around the globe but it won’t have any major impact in oil prices so don’t buy oil you see uncertainty in middle-east, in fact rise oil prices in uncertainty should be taken as selling opportunity during 2008 Mid-March or in July. On the down side I see oil going back to $68.80 by emd of year and higher, it can touch $111.80 or may move higher till mid-March or in July if it break 111.80. Heating oil and RB gas will follow oil but natural gas will surprise everybody by moving higher in second half of 2008.
After middle of 2008 one can buy natural gas and sell oil as a hedging will bring safe return.
During 2008, all grains will remain weak except corn. Soybean and soy bean products (soy oil and meal) will remain in bear market from 14 of January. Wheat will also move down in first half of 2008 but you can buy in second half of 2008 as wheat prices will move up sharply due to crop problem in Australia. I see Wheat moving to new high in second half and it may touch 1500. Canola and oat will remain weak during 2008.
Coffee and sugar is supposed to be my favorite in 2008, so one can keep accumulating the position if any drops come. Lumber and Orange juice will trade weak but we may see some volatility in prices of Cocoa.
Dollar will remain in bull market and the journey for dollar will be very smooth without any obstacles. US Dollar should gain around 18% during 2008. All major currencies will have a setback against the US Dollar from Mid March except Japanese Yen and South American currencies. Euro, British Pound, Canadian Dollar and Australian Dollar will lose value quite sharply against the US dollar during the middle of the year.
If I have $100, I will put $45 in alternative energy areas like Solar, Bio-fuel, Geo-thermal, Cellulosic Ethanol, Wind and Nuclear. $15 I would put in banking and financial stocks, $10 I would put in commodity related stocks including Water and agriculture, and the remaining $30 I would put in wireless telecommunication, semi-conductor and the technology stocks. At the same time I would like to hold all the assets in US dollar.
During 2008, around the globe there will be political instability in each and every country. I do not see any major disaster like terrorist attacks so the violence will only occur due to the political reason in that country. I do not see any major natural disaster except there will be a big fire which will take place in USA again in 2008.
My newsletter will guide you on the short term trend because the trends mentioned above are just overall trend for 2008 but weekly and monthly trends or the price targets you will get in my newsletter.
Important golden note: Commodity market and commodity Index will move down from 4th of January as very important planetary movement is taking place. This one will only save you millions but it will make also millions. February and early March they will rise agains but from April they will lose value again.
I am also excited about my next book which is mostly covering all the markets as well as the world in brief. The book shall be out by the end of February.
To know short term trend or weekly trend please subscribe weekly newsletter.
Every qtr, I put furture outlook on my website so please see update on every qtr. Once again I wish you are great luck for 2008.
Thanks & God Bless
Mahendra Sharma, 1st Jan 2008