Black Tuesday came ..., but what is next? : Bad Credit Advisor

Black Tuesday came ..., but what is next?

Good question, and the one I can't answer. Nobody can, but as I said just in the very last paragraph of my previous post, written on the 23rd, as far as stock market goes, it is primed for a major correction.

Those who read my blog on a regular basis, know that I am often right in my analysis. So after the horrendous fall on Tuesday, and a weak recovery, which by the way was still very nice, I predict the following for the rest of 2007:
- stocks will go down and hard, with Dow going back to 10,500 level and may be below
- interest rates will stay where they are today, fluctuating slightly with Prime held at 8.25 +/- .25 percent, and 30 year Fixed Rate Mortgage in the range from 6.00 to 6.375 percent
- oil prices will move back and force between $63 to $81 per barrel
- US dollar will go down even more, trading around .72 Euro
- gold will reach price between $775 and $790 per ounce and then settle somewhere at around $750
- real estate market will remain weak and get worse, with number of foreclosures sharply up, and more lender troubles
- sub prime lending as such will cease to exist, and borrowers with bad credit will be effectively shut from home buying opportunities
- trade deficit will continue to grow reaching some scary number

No I don't have the crystal ball, but I know I will be right. And if I am wrong? That can not happen. As the one man opinion, I would recommend buying some gold, silver, diamonds and land. I would not buy foreclosures and rental properties. Supply will be much higher than demand. Sure, you can get the greatest deal, but no one will need it.

Wed Feb 28, 2007 08:02PM by Tony | More in Economy | Comments (0)

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