Foundation for the Study of Cycles

Prediction 1 – Starting this year, most US stocks are likely to fall in a zigzag pattern for nearly three long years! Now P/Es are already back up again to grossly overvalued levels.

Prediction 2 – Gold will skyrocket far higher than $2,00 per ounce by the end of 2011. Between now and 2012, there will be periods when silver and other metals do better than gold.

Prediction 3 – The US dollar index will begin to sink in 2010 and will not hit bottom until early 2012. Currencies are not a beauty contest. They are an ugly contest and among many ugly currencies, the dollar usually wins the prize.

Prediction 4 – Most commodities will not make new, all time high! Oil will not return to its all-time highs. Unlike gold, it is driven less by currency disasters and more by consumer or industrial demand.

Prediction 5 – The US economy will suffer a severe double-dip recession in 2011, probably worse than 2009.

Prediction 6 – The US budget deficit will surpass $2 trillion in 2012. Politicians know they are rigging the numbers.

Prediction 7 – Bond prices will plunge because of out-of-control deficits and a sinking dollar. You will see a major spike upwards in yields and that could give investors a huge buying opportunity to lock in those higher yields for years to come.

Prediction 8 – 2012 will be the year of maximum turmoil in markets and peak tension in society. A convergence of cycles – dollar cycle + stock market cycles + consumption cycles + GDP cycles – all bottoming in this same approximate time frame.

Prediction 9 – 2012 will bring a massive wealth shift from old fortunes that are destroyed to new ones that are created.