Investing in 2006 - A Speculator's Perspective
by Explosive Speculations' Staff
This coming year looks to offer some exciting investment
opportunities. Alternative fuels, the housing market, inflation,
gold, silver, and auto manufacturing will be economic headlines
for the year 2006.
Screws Continue to Tighten On Energy
2006 will see oil
prices rise upwards due to increased oil demand from the world's
fastest growing economy, China. This rise in price is also due
to increased oil supply falling short of meeting increased oil
demand. This will force economies around the globe to seriously
consider alternative fuel.
These alternative fuels
will mainly be Synfuel because of Synfuel's ability to integrate
with the world's existing infrastructure. This will become the
cheapest and most efficient method of combating rising energy
prices while being able to appease environmentalists. While new
alternative fuel plants will not necessarily be brought online
this year, steps will be taken to promote Synfuel
technology.
While Synfuel solves the problem of
continued oil demand, nuclear power will ease the natural gas
power plant problem. U.S. Congress will continue to seriously
consider the benefits of nuclear power.
Suffering in the Housing Market
2006 will set the
trend for the housing market for the next few years. Look for
the price of an average house in major cities to drop because of
higher energy prices, increased unemployment, outstanding debt
of the average American, and more houses for sale than houses
being bought. Continued fed rate hikes might be the initial push
into housing's decline in value. When the housing market runs
into trouble expect more media coverage than the O.J. trial
because most people own a home, whereas if the stock market runs
into trouble most people don't invest. One can expect congress
try ineffective - even counterproductive - methods to ease
suffering in the housing market.
Bernanke vs. Gold
With the ascension of Ben Bernanke
to the throne of Federal Reserve Chairman, expect Bernanke and
The Fed to continue interest rate hikes until a piece of the
U.S. economy experiences disaster. Coupled with Bernanke's
philosophy of monetary inflation, this will bring utopia for
gold investors and other sound money advocates.
Not only is the value of gold moving up against the dollar, gold
is moving up against most currencies world-wide. Because gold
and sound money policies have been ignored by the world over,
and the decline in currency value, investors - private and
public alike - are beginning to purchase solid assets. Therefore
expect the price of gold to continue in the up direction.
Silver - Icing On the Cake
Silver is gearing up to be
this year's sleeper investment. This is due in part because
silver could not be purchased at a better value. Also, silver is
being used faster than it is being mined creating a supply and
demand imbalance that could likely lead to a shortage. World
stockpiles of this precious metal have already diminished to a
multi-decade low. Investors leveraging their money in the silver
mining sector should experience reasonable gains on their
investments.
Driving Around In 2006
Another big story for 2006 will
be the thousands of layoffs experienced by American auto
manufacturers. Look for business restructuring including a
strategy of bringing cost effective and fuel-efficient vehicles
to market. U.S. auto manufacturers' stock value will continue to
decline throughout 2006. Serious automobile investors will look
towards Japan, especially companies like Toyota, when evaluating
auto investment opportunities.
This coming year will provide profitable speculative investment
opportunities. Explosive Speculations Newsletter is designed to
capitalize on the economic weakness that 2006 will likely bring.
Don't miss out on valuable information that can help bring that
"extra something" to your investment portfolio.
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About the author:
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informing investors about investment opportunities that have a
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