S. Jibreel
unread,May 14, 2010, 2:42:43 PM5/14/10Sign in to reply to author
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to Market Musings
Here's a brief review, we've just finished (as of 2007) a credit
fueled asset mania similar to the tulip mania of the 1600s or the
South Sea Bubble of the 1700s. One thing history has taught us about
manias is that prices always return to levels below where the bull
market started.
My predictions are based completely on the study of charts which (as
the theory goes) reflects the social mood which is what really drives
the markets. Events that occur in the world are also driven by the
same social mood. Events don't make markets move and markets don't
make events happen. Social mood makes both events happen and markets
move. So know that asking me a question like "what impact will EU's
bailout of Greece have on your predictions?" will always produce the
same response "None". Feel free to ask anyway.
Here are my targets for 2015:
DOW below 1,000 (yes that's right DOW will be in triple digits one
day)
Oil somewhere between 4 to 10 dollars per barrel
Gold below 500
Real estate 10% of what it was in 2005
As you might notice, gold is the only asset that doesn't lose much and
that's because gold isn't an asset, it is actually currency and a real
one unlike the USD. But for now USD is the thing to hold.
****** More about paper money and gold in another email ********