2nd quarter forecast -I have a strong conviction many of these will play out, but the timing is an issue. The following is my forecast for the remainder of 2010.
- Oil will see a correction, potentially significant in the months ahead. While a long term bull oil has gone up almost in a straight line. Oil will retrace back to the $65-$70 range. I think it may be topping out sometime in April, if it hasn't already.
- Significant correction in the DJIA - 8,500 - 9,200
- Bond yields begin to rise rather substantially on an annualized basis in Q3-Q4 due to debt monetization.
- This debt monetization will send precious metals soaring -
- 2010 Price Target Gold - $1,450-1,600/oz
- 2010 Price Target Silver - $24/oz-$26/oz
- More sovereign debt issues - either with Italy, Spain, Portugal
- A weakening GBP & EUR