Financial and Economic Forecasts 2010, Investment Implications

/ Financial Markets 2010
Aug 23, 2010 - 08:09 AM

By: Money_and_Markets

Exactly one year ago, in the first Weiss global forum, we forecast a massive shift in wealth from Western countries bogged down in debt and recession … to Asia and emerging markets enjoying rapid growth.

Now, that shift is in full swing!

So, last week, I again gathered my team of international experts to tell you what we think is coming next.

Joining me were Mike Larson in North America, Claus Vogt in Europe, Tony Sagami on Asia, and Rudy Martin, our expert on South America. Plus, I also invited Ron Rowland, one of the nation’s foremost experts on international exchange-traded funds (ETFs).

Here’s the edited transcript …

Martin Weiss: We have two important missions today:

First, we will gather our collective knowledge and give you our eight new forecasts for 2010 — some very negative, some very positive.

And second, we will give you specific, actionable recommendations using exchange-traded funds or ETFs. Fortunately for the average investor, there are now hundreds of ETFs available to help protect you or profit from almost any trend anywhere — U.S. markets, foreign markets, up markets or down markets. And that’s why I’ve also invited Ron Rowland — to give us his ETF picks based on everything we cover here today.

Mike, last time we had a global forum we shifted from west to east — the path of the flow of capital, so let’s follow the same pattern and start first here in the U.S. with your forecast.

Mike Larson: Sure, Martin. Here’s my forecast for the U.S.

Forecast #1. The Obama administration and Congress will be paralyzed, unable to pass another big stimulus package, and unable to prevent a double-dip recession.

Just in the past few weeks, we’ve seen an outpouring of bad data and news on the economy — GDP slowing sharply, a key manufacturing index hitting a seven month low, home sales running at the lowest level in nearly a half-century, bank lending falling.



Martin: Not to mention the horrendous jobs reports!

Mike: Yes! And in response, you’re already starting to hear some voices clamoring for another stimulus package. But while the Obama economy is sinking fast … the Obama administration is moving slowly. Congress is paralyzed.

Martin: Of course! People are saying: “Hey, you’ve spent a fortune of our money on the first bailout for the economy, and it bought us peanuts. Now, you want to spend another fortune on another bailout and throw us some more peanuts!?â€