What is next for dollar, gold, realestate, bonds, commodities and stocks?
Neal Henderson
Mar. 22, 2008

The Federal Reserve has stabilized the financial meltdown for the time being. The commodities have traced back in price surge. The gold has corrected more than 10%. Bear Sterns is down but not out yet. Overall the economy is in trouble although the trouble is stabilized some what.

You must be thinking what’s next? Where to focus for investment?

All indications are there that two sectors will dominate the rest of the year. US Dollar will rise and so will real estate prices. The homebuilder stocks may have seen the bottom. Smart money is buying them again. Please understand there is child born in US every 28 seconds. The population will continue to rise. There will be need for more housing. The housing glut is a long term opportunity for investment.

Some of the depressed commodities will rise fiercely. Examples are lumber, cattle, hogs and so on. Industrial metals and precious metals are now in an intermediate term (few years) bear market that can take prices down by 50 to 60% from the top. Gold may be attractive again at $600 an ounce.

Oil is an interesting story. Oil is actually in abundance as Saudis secretly agreed to open the gate till US election in November. Expect oil price to come down sharply below $60 a barrel by the beginning of the summer.

Stock market will stabilize here, perhaps run non the upside somewhat for the next nine months. But the biggest gain is in what is depressed most in the last two years. They are lumber futures, meat futures, US Dollar and residential real estate. Real estate is a somewhat complicated story. The debt market must stabilize and meltdown stopped before the real estate market can prosper.

What is next for dollar, gold, realestate, bonds, commodities and stocks?
Neal Henderson
Some of the depressed commodities will rise fiercely. Examples are lumber, cattle, hogs and so on. Industrial metals and precious metals are now in an intermediate term (few years) bear market that can take prices down by 50 to 60% from the top.
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