This year it will offer some exciting investment opportunities. Alternative fuels, the housing market, inflation, gold, silver and automotive production will be economic titles in 2006.
The screws continue to tighten the energy
In 2006, oil prices will rise due to increased demand for oil from the world’s fastest growing economy, China. This rise in prices is also due to the increased supply of oil, which does not correspond to the increased demand for oil. This will force the world’s economies to seriously consider alternative fuels.
These alternative fuels will be primarily Synfuel due to Synfuel’s ability to integrate with existing global infrastructure. This will become the cheapest and most effective method of combating rising energy prices, while at the same time being able to reassure conservationists. Although new alternative fuel plants do not have to be online online this year, steps will be taken to promote Synfuel technology.
While Synfuel solves the problem of continuing oil demand, nuclear energy will alleviate the problem with the natural gas plant. The US Congress will continue to seriously consider the benefits of nuclear energy.
Suffering in the housing market
2006 will set the housing market trend for the next few years. Look for the price of the average house in big cities to fall due to higher energy prices, increased unemployment, the outstanding debt of the average American, and more houses for sale than the houses being bought. Continued interest rate increases may be the initial impetus for the decline in housing value. When the housing market is struggling, expect more media coverage than the OJ hearing, as most people own a home, while if the stock market has problems, most people do not invest. Congress can be expected to try ineffective – even counterproductive – methods to alleviate housing market suffering.
Bernanke vs. Gold
With Ben Bernanke ascending the throne of the Federal Reserve, expect Bernanke and the Fed to continue raising interest rates until part of the US economy experiences a catastrophe. Together with Bernanke’s philosophy of monetary inflation, this will lead to a utopia for gold investors and other healthy advocates of money.
Not only is the value of gold rising against the dollar, gold is rising against most currencies around the world. As gold and sound money policies are ignored around the world and the currency depreciates, investors – both private and public – begin to buy solid assets. Therefore, expect the price of gold to continue upwards.
Silver – Icing the cake
Silver is preparing to be this year’s sleeping investment. This is partly because silver cannot be bought at a better value. In addition, silver is used faster than it is mined, creating an imbalance in supply and demand that is likely to lead to shortages. World reserves of this precious metal have been depleted for many decades. Investors using their money in the silver mining sector should get a reasonable return on their investment.
Driving in 2006
Another big story for 2006 will be the thousands of layoffs experienced by American carmakers. Look for business restructuring, including a strategy to bring cost-effective and cost-effective vehicles to market. Shares of US carmakers will continue to decline in 2006. Serious car investors will look to Japan, especially companies like Toyota, when assessing investment opportunities in cars.
This next year will provide profitable speculative investment opportunities. The explosive speculation newsletter aims to take advantage of the economic weakness that 2006 is likely to bring. Don’t miss out on valuable information that can help you add this “extra thing” to your investment portfolio.
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