The S & P 500 WILL BE UP 10 to 15% IN 2007?
For the first time since 2001 all the analysts surveyed by Barron’s are in unanimous agreement that the S & P 500 will be up 10% at the very least. Well the surest bet for 2007 isthat not only will the market NOT be up but it is my firm conviction that it will be down at least 10%.
THE FED’S Conundrum?
The question that most analysts and especially Bernanke are asking is: Why were long term interest rates still not rising in the face of 17 consecutive ¼ point discount rate increases? The answer my friends is both simple and very worrisome. All these Banks, Hedge Funds and other financial institutions that have had it so good for so long, making all that easy money are now between a “rock and a hard place”, as they are now locked since their positions are too big to liquidate (CASH OUT). They can’t get out because there is nobody to sell to. They are all forced to continue to keep playing the game until the bitter end.
The same holds true for all the Central Banks that have been buying up all the
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