Generational Dynamics Forum - New Site

vincecate wrote:I don't see stocks bouncing back up to anywhere close to the current level. I think it will be bonds dropping that causes/triggers the stock market to drop.

I sincerely hope that your open mind is now saying, “Wow, I had not thought about these specifics”. I have always tried to look beneath the surface of why things are not what they appear. This leads to my next projection which is an awareness of the financial environment. More of the same with a lack of balance? Ponder this phrase as the introduction into my next projection.

My next projection is that the computer world will have a glitch that will shake Wall Street, Main Street, and Capitol Hill. I have seen the S&P futures evolve into an environment where the bobby pin is going to short circuit the main frame. They called it the fat thumb trade in May of last year. A momentary glitch that sent billions of dollars into cyber space away from peoples’ account statements. Did we learn from that? No. The old adage fool me once, shame on you, fool me twice shame on me. This glitch in 2011 has to have a backdrop that allows a void to materialize. The ‘void’ creator is Benny B. and his academia buddies that I will refer to as the ‘Rascals’.

The S&P was up almost 13% in 2010. Not euphoric or is it? The comparisons to the 10 year environment may make you think it is euphoric. The past 10 years has had a gain of between 7-8% total not annually. The month of December was up just shy of 7%. Wow, one month made as much as 10 years! How is that possible? The ‘Rascals’! December 2010 was the biggest gain since 1991, 19 years ago! The ‘Rascals’.

Here is my next forecast. The S&P futures will have at least a 22% correction from the highs to the lows this year equating to a movement of 250 to 300 actual points. More importantly, we will have volatility. My Daily CCT is reading at warning levels not seen in years. The stock market needs energy to hold and escalate from many sources not just the “Rascals”. The market correction will need a catalyst to shock reality back into a Camelot minded investment world. Watch closely how this new Congress deals with the Fed. No longer is the Congress and the Fed bedfellows and bed gals! Some very key positions in Congress are now held by some very adversarial personalities to the ‘Rascals’ . The Fed has been an uncontrolled teen-ager on speed, it is time to be taken to the woodshed where Ron Paul has a big stick.

The next projection is rampant inflation that becomes a tsunami over the next 5 years. The ‘Rascals’ still stinging from derriere adjustments will actually raise interest rates in 2011. The ‘Rascals’ will be viewed much differently by everyone in 2011. Understand the transformation!

The 2011 strategy is to see the big picture as understanding the environment is paramount. Goldman Sachs will finally be shackled by regulation not conscience as their front running the Fed QE2 money will end. The bond market took it on the chin in 2010, the stock market will take it on the chin in 2011. Commodities will continue to emerge as favorites, stock and bonds as tools of the ‘rascals’ to be shunned.